PKR today challenged Prime Minister Najib Abdul Razak to take a bold step and announce the implementation date for the goods and services tax, in order to make the next general election a referendum for the new tax.

youth leaders wacana ekonomi 120611 rafizi ramli.JPG Speaking at the PAS headquarters in Petaling Jaya this morning, its chief of strategy Rafizi Ramli ( right ) said that this iwas in line with global practices.

“The issue was made the main election issue in most countries which implemented the GST, and the election results were a referendum on whether the people agreed with its implementation,” he said.

According to Rafizi, a strong mandate is required for such a tax as it would affect all Malaysians, including those whose incomes were lower than the taxable threshold.

“The people deserve a confirmation from the PM; if they vote for BN in the next general election, does it also mean they are voting for a new tax?” he asked.

Najib had earlier this month said that the GST was likely to be implemented after the general election, as the government needed time to ensure buy-in from the rakyat.

Commenting on this, Rafizi said Najib’s latest statement on the GST was still not enough to show that the government would indeed implement the tax.

'Commitment vague... just like Pak Lah'

“His commitment (to the tax) is vague... just like (former premier) Pak Lah. Both say they will implement it,” he said.

Beyond giving voters the runaround, Rafizi added that “beating around the bush” on GST was also not doing the business community any favour.

“It is even worse for the business community. It needs eight to 12 months to prepare for the GST, and if the government continues to dilly-dally, it will keep on paying for readiness costs.

“Najib has to be brave. If he believes GST is the key to overhauling the economy then say it: ‘If we win, by Aug 1 we will implement GST’,” he said.

Nevertheless, Rafizi said that the government was not being truthful to the people by insisting that GST would solve the country’s deficit issues.

“At the four to five percent proposed, total collection is only RM6 billion, and that will not be enough to cover our deficit, which stands at about RM40 billion.

“It will take a while for (GST) to cover the deficit, unless it will be four percent the first year, seven percent the next and 15 percent the year after,” Rafizi said.

He added that while Pakatan Rakyat was not in principle opposed to the GST, which he admitted to be an efficient tax, the coalition believes controlling leakages and better collection of corporate taxes to be better solutions in raising revenue.

Rafizi also noted that implementing the GST at a time when only 1.7 million people earned enough to pay income taxes also ran counter to the government’s move to address cost-of-living issues.

“The GST will only add to the cost of living at a time when inflation is on the rise,” he said.

Cost of living survey by PKR Youth

Meanwhile, PKR Youth announced that the wing would be conducting a nationwide survey to gather data on the cost of living among the youth.

“This is because the youth are the most affected by inflation, as they have to service car loans, student loans and mortgages at entry level wages,” Rafizi said.

pkr youth pc 230308 samsul iskandar mat akin According to Youth chief Shamsul Iskandar Md Akin ( left ), the survey would target a sample size of 1,000. PKR Youth members would conduct the survey at major transportation hubs in Kuala Lumpur and every state in Malaysia on Oct 1 and 2.

The survey will also be available online on the PKR and PKR Youth websites.

The areas of focus will be career opportunities, effects of PTPTN and private student loans, housing, minimum wage and taxes and duties on car purchases vis-a-vis the national automative policy.

“We expect to present the results as supporting data for the Pakatan alternative budget, which will be presented on Oct 4, before the Budget 2012 is tabled in Parliament on Oct 7,” he said.

Asked if the survey had been left to the last minute, Shamsul Iskandar disagreed, saying that the purpose was to “enhance and strengthen the independently collated data already available”.

The results of the survey and Pakatan's alternative budget will also be presented in forums that will take place throughout October.