KUALA LUMPUR, Oct 27 — Insisting that Islam frowns on a broad-based tax regime that burdens the poor, PAS MP Dr Khairuddin Aman Razali called tonight for a review of the government's decision to roll out the controversial Goods and Services Tax (GST) next year.
The Kuala Nerus MP told the Parliament that according to Islamic laws on governance, tax can only be imposed when the government runs short of revenue from other sources of income.
"So GST is against the principles of good governance in Islam," Khairuddin said during his turn in debating the Budget 2015 this evening.
But his comments riled Kinabatangan BN MP Datuk Bung Moktar Radin, who insisted that the poor will not be affected by the GST as the government will not tax essential consumer products.
"Every country, even Islamic ones, have taxes," rebutted Bung Moktar.
"Tax does not distinguish between the rich and poor," hit back Khairuddin.
Detractors have argued that the broad-based tax is “regressive” and takes a larger percentage of income from those in the low-income groups than from high-income groups.
The opposition alliance, Pakatan Rakyat, mounted its campaign against the GST in the run-up to Election 2013, insisting that the implementation tax must coincide with an increase in disposable income.
However, the GST bill was passed through the Dewan Rakyat on April 7, despite stern resistance, ensuring that the consumption tax starts at a flat rate of six per cent beginning April 1 next year.
In order to cushion the impact, Prime Minister Datuk Seri Najib Razak, in his Budget 2015 speech announced a slew of zero-rated items.
