Clearing the bad vibes caused by GST

Writer: Pen Yi Feng

Oriental Daily, Oct 16, 2014

GST is like a monster. Even though it is supposed to appear half a year later, the Government has already been busy clearing the bad vibes and to dispelling public fears.

Prime Minister Najib had earlier announced the nine GST-exempted items and subsequently, the full list of GST zero-rated or exempted items were gazetted.

A total of 900 items have been listed and the large number makes one a little confused, thinking that the scope of GST is shrinking and there is nothing much to be afraid of.

It reminds us of our Standard Six exam. The teacher would call out the names of those who have passed. Those who have not been mentioned would know full well that they have failed.

In the same logic, even though we are happy with the goods and services listed, those not listed may be exactly what we consumers are looking out for. The feeling is mixed; more to worry about than not.

Rice, bread, fruits and cooking oil may not be subjected to GST, they will surely be affected directly or indirectly when prices of all other things are rising. People have worries and the reality is the Government always allows you to be happy first and then gives you the worry.

The reality is, as we rejoice over the good news of GST zero-rated or exempted goods and services, Pan Malaysian School Bus Operators Association already announced fee increase of over 40 per cent.

Their projection is calculated on the basis of the 20 sen hike in diesel price, and GST- induced higher cost of spare parts. The 20 sen hike on diesel may not be much but it amounts to RM300 a month just on fuel.
Even parents cannot help but agree that the fare increase is reasonable. SPAD chairman Tan Sri Syed Hamid understood the hardship faced by school bus operators and abolished the fixed fare structure.

He allows school bus operators and parents to work out a new fare structure. In other words, he has switched on the green light for school bus operators to raise their fares.

Besides school bus operators, lorry, taxi and bus operators are most affected by rising fuel price and are considering raising their prices.
But raising taxi or bus fares may not cause a major chain reaction, unlike lorry transportation as all goods are moved by them.

Housewives are most sensitive to any price movements. Even when the price of fish, prawns, crabs, fruits and vegetables go up by five sen, they would feel the pinch.

Their habitual reaction is to shout when the pain is small, scream when the pain is big and tell the whole town when the pain is severe!
The Government is actively trying to ward off any GST-induced bad vibes. But it comes quietly and almost unstoppable; government’s effort may prove futile even if it is carried on for a long time.

Original Source: 为消费税剔除戾气