KUALA LUMPUR, April 30 — Deputy Finance Minister Datuk Ahmad Maslan should quit his government post as he is unable to explain Putrajaya’s rationale in implementing the Goods and Services Tax (GST), DAP’s Liew Chin Tong said today.
The DAP political education director said that the deputy minister was “not very smart” and and the finance ministry was no place for a “propagandist” with no understanding of the economy.
“Let me say it again, the Deputy Finance Minister Ahmad Maslan should be removed from the Finance Ministry as he doesn’t understand economics at all,” said Liew in a scathing statement today.
It was reported yesterday that Ahmad was warned by several top Umno leaders to stop making remarks about GST especially during the campaigning period in Rompin and Permatang Pauh, fearing backlash.
He was also reported saying that former prime minister Tun Dr Mahathir Mohamad suggested that the government abolish the new tax system because he did not understand how GST works.
Liew cited Ahmad’s statement that GST has brought tax rates down for individual income and corporate taxes as another “kurang cerdik” (not very smart) argument from Ahmad.
“While there are marginal tax cuts for income and corporate taxes, which are insignificant, the fact is that majority Malaysians are BR1M recipients who get taxed on it.
“GST taxes everyone and the impact on the poor is even bigger due to the limited income that they have. This is why GST is regarded as a ‘regressive tax’, a view that Ahmad has rejected without providing any evidence suggesting otherwise,” he said.
Liew said that Putrajaya’s aim of introducing the GST to increase the level of tax revenue to reduce its deficits was a classic case of short-sightedness.
“The biggest challenge posed by the GST to Malaysian economy is not inflation, but the dampening of domestic consumption which is an important pillar of our economy,”
“Disposable income of the ordinary Malaysians gets depleted by the GST and the result is less consumption. If every household cuts back on consumption, the economy will be at a standstill,” he said.
Liew said that if people took Ahmad’s advice to avoid GST by “cooking their own meals” instead of going out, the entire food industry from the burger stall hawkers to restaurants will run out of business.
“We don’t need a propagandist at the Finance Ministry. We need sensible leaders with a holistic understanding of the economy to steer the economy through turbulent times,” he said.
Last month, Ahmad told Universiti Teknologi Mara students to cook their own meals instead of eating out to avoid GST.
Many students responded on social media ridiculing the deputy minister’s suggestion saying most of them who stay on campus are not allowed to cook.
