KUALA LUMPUR: Pakatan Harapan’s proposal to abolish the Goods and Services Tax (GST) is not realistic, said MCA vice-president Datuk Chua Tee Yong.
“Pakatan Harapan pledges to abolish GST if it wins the general election. If we analyse all the proposals in its alternative Budget, there is a catch,” he said during the leaders’ reply session at the 64th MCA annual general meeting (AGM).
He pointed out that Pakatan will not abolish GST immediately, and that what the coalition suggested is for GST to be zero-rated.
“Pakatan (also) said it needs one year to implement. If it is sincere, it should implement immediately and not wait a year,” he said.
Chua said people should realise that Pakatan did not promise that it would not implement GST indefinitely, and has proposed to replace GST with Sales and Services Tax (SST).
“If SST collection is not sufficient, it proposes to increase personal income tax and introduce inheritance tax and capital gains tax,” he said.
Chua said that in other democratic countries, such as Australia, GST or value-added tax remained despite changes in the ruling government.
On China’s investment in Malaysia, MCA secretary-general Datuk Seri Ong Ka Chuan told delegates that the country is not Malaysia’s enemy but a friend and important partner.
Using automaker Geely’s acquisition of Proton as an example, Ong said it has promised to employ its latest innovations and export half of Proton’s output.
He said China buys RM10bil worth of goods each month from Malaysia, including palm oil, bird’s nest and Musang King durians.
For September, the figure was RM11bil, he added.
“If they do not buy palm oil from us, its price will drop. But people do not understand. They always harp on 1MDB,” he said.
MCA deputy president Datuk Seri Dr Wee Ka Siong said the Prime Minister’s speech at the AGM confirmed that funding for new Chinese primary schools would come from the Government, putting an end to doubts raised by the Opposition.
He also criticised Penang Chief Minister Lim Guan Eng for confronting Deputy Education Minister and MCA Youth chief Datuk Chong Sin Woon in the corridors of Parliament, instead of raising the issue in the august house.