This morning I received my latest Unifi bill and noted that:
[a] Goods and Services Tax (GST) is also being charged on rental of telephone/Internet services whereas formerly it was payable only on calls made.
Similarly,
[b] The single tier dividend system provided for the low-income investors to get credit to offset their deducted tax against their tax liability and paid tax only on what was due. But with the introduction of the single tier dividend system even the low-income taxpayers who paid low or no tax were refunded the excess deducted tax but now are subjected to 25 percent tax.
[c] The imposition of GST on prepaid phone cards was immediate, resulting in the telcos keeping the Service Tax and imposing GST on customners even when the GST is to replace Service Tax. When the public made objections, the Customs declared that prepaid cards were not subject to GST, but the Malaysian Communications and Multimedia Commission (MCMC) urged that time be given to change the system.
Imposition was immediate but removal needs time. Is the MCMC pro-telcos? Now the PM has directed the minister to act.
This gives the perception that this small aspect needs the intervention of the PM of the country as the high paid civil servants cannot decide on their own. The excess GST paid on prepaid cards to-date should be recovered from these high paid civil servants for the lack of their inability to make a decision that benefits the rakyat rather than the telcos.
The GST will continue to be imposed until a decision is made. In the meantime what option doess the rakyat have whose phones need to be reloaded? Delay will benefit the telcos.
The multi-millionaires and billionaires can continue to hide their wealth, as with the abolishment of estate duties some years ago for which they benefited by not having to pay any tax on their accumulated wealth, and best of all, also kept the quantum of wealth secret as there was no law that requires them to disclose their wealth even if the wealth was accumulated via fraud or corruption.
Rich and poor pay the same tax rates and those most are the low-income rakyat as these changes have negligible impact on the rich.
All are equal in the face of taxes
All are equal in the face of the law and now all are equal in the face of taxes.
The rich receive financial advice by finance professionals and they may be the biggest beneficiaries from their advice, training opportunities and software businesses. They probably make sure that taxes do not impact them adversely but bring the small fish into the net which is designed to be finer so that even the smallest fish has to pay in full its dues.
Such laws give rise to the perception that the rich and powerful accumulate by legalising acts which may otherwise be perceived as fraudulent or corrupt and thus “even the poor feel justified in indulging in fraud and corrupt practices”. This was the remark by an engineering professional during a training course just a few days ago.
When asked, the speaker replied that fraud and corruption are not crimes unless one gets caught and the case proven. There are cases where an act may be wrong but is considered legal as the laws are made by leaders and interpreted by lawyers.
Capitalism was devised by the rich so they make sure they are not impacted by the tax policies they advise and get approved.
Happy Wesak Day - forgive the greedy who think that they can buy their way to Heaven and take their ill-gotten wealth to enjoy their extravagant and wasteful lifestyles in the nest world.
