Writer: Ng Wei Aik

Kwong Wah, Oct 8, 2014

The parliament will begin its current session on Oct 7 after a long recess of seven weeks. Prime Minister Najib, who is also the Finance Minister, will table the 2015 budget on Oct 10 and by then we can have a clearer picture of GST and how it impacts our cost of living.

Recently, the Government raised the price of Ron 95 and diesel by 20 sen which has somewhat dampened our expectation of the 2015 budget. Increasing BR1M to RM1,000 and lowering corporate tax will not help the ordinary people much.

We are not optimistic over our economic outlook but we still hope the Government can relax banking policy in helping the homeless to purchase their first home. Many who had been allocated with low-cost or medium-cost housing units were forced to give up their units because they failed to secure a bank loan due to policy restriction.

With the impending GST, the burden on people will be heavier. The Government’s target is an increase of RM18 billion in revenue collection under GST, which is equivalent to RM650 per person per year. That also means a family of five will have to cough out RM3,250 more a year. Thus, even if BR1M was raised to RM1,000, the Government will still collect RM2,250 more from each family. The Government will never tell you this but it is crucially painful.

Likewise, many do not know that TNB charge the joint management body for your apartments or high-rise condominiums at commercial rates even though the electricity used is for operating the lifts, lighting public areas, water pump and management office. They are used for non-profit purposes and yet TNB is allowed to charge them for commercial use. This is something we can never understand.

Now under GST, the management bodies of these apartments and condominiums will have to pay another 6 percent tax and eventually, the higher cost will be passed on to the residents.

GST is detrimental to the interest of consumers as they have to shoulder heavier tax while high-income earners will enjoy a rebate in corporate tax as well as GST discount. This, the Government will never tell you.
As people’s representatives, we MPs will voice public grievances during the budget session in the parliament. We are duty-bound to raise your demand. In fact, we also hope the Government would be considerate enough to improve our lot also.

We are the most misunderstood lot. If we asked for a pay rise now, we will be sure to come under public castigation. However, MPs are consumers too and when prices rise, we are badly affected. For example, when I drive to Kuala Lumpur for meetings, our petrol allowance will not be raised automatically because of higher fuel prices.

There has not been any adjustment in MPs’ remunerations since 2005 although the index on cost of living has been rising continuously. MPs get RM13,108.59 a month. After deductions for party donation, salary for an assistant and expenses for a service center, repayments for housing loan, car loan, petrol and toll charges and various types of social activities, there is nothing much left. That is why we need to organize fund-raising events!

MPs have a tough life. Even Dr Wee Ka Siong complained once that when MCA refused to join the Cabinet and he became a backbencher, he found it difficult to support his numerous assistants on an MP’s pay without the support of a family business.

When we are hit by the MH370 MH17 disasters, we refrain from asking for higher pay. But as the Chinese saying goes, if we want our horses to stay strong, we must also feed them well.

Nevertheless, we will bite the bullet and tighten our belts so that together with the people, we can go through the “winter” ushered in by GST as soon as possible!

Original Source: 消费税来临前夕的寒冬