Stop taxing the people just to increase govt revenue, says Dr Wee

  • Nation
  • Tuesday, 14 Jan 2020

YONG PENG: Pakatan Harapan should stop taxing the people more just to see an increase in the government's revenue, says Ayer Hitam MP Datuk Seri Dr Wee Ka Siong.

The MCA president cited the recent decision by the Johor government to increase quit rent, which caused unhappiness among the rakyat who voted for them in the last general election.

"Former Negri Sembilan Mentri Besar Datuk Seri Mohamad Hasan never had the intention to raise taxes as he always sought other areas to boost the government's revenue.

"The present government should think twice and look at the current economic situation before increasing taxes that will burden the rakyat more," he said when met here on Tuesday (Jan 14).

Meanwhile, Dr Wee also said Finance Minister Lim Guan Eng now has a better understanding about the differences between goods and service tax (GST) and sales and services tax (SST) after Malaysia's shadow economy accounted for 21% of gross domestic product (GDP).

He added that under GST, no businesses, especially those involved in underground activities, were able to escape as they had to declare their income to the government.

"I remember in Parliament where myself and others, including Rembau MP Khairy Jamaluddin, pushed the government to not repeal GST but instead decrease the amount from 6% to 3%.

"However, Pakatan replaced it with SST and now our shadow economy accounts for 21% of Malaysia's GDP," he said urging the government to find a solution.

It was reported by Bernama that Lim said Malaysia’s shadow economy accounted for 21% of GDP, amounting to an estimated RM300bil.

He said the strong underground economy, which he attributed to illegal activities that are difficult to track down, should be tackled effectively.

Lim added that the loss in tax revenue from the hidden economy could threaten the stability of the nation’s tax ecosystem, particularly in the aspects of fair taxation and voluntary tax compliance.

He urged the Inland Revenue Board to constantly enhance its collaborative network and information sharing with other government agencies in an effort to curtail the leakage from the underground economy.

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