GST not burdening Rakyat?

by : Junz Wong

EXAMPLE...example of public complaint regarding how GST triggered the increase of price from an actual cost! 

ADUN LIKAS Junz Wong criticized PM Najib for re-assuring that GST would not burden Rakyat citing it as an insult to the intelligences of Malaysians. 

"No matter which angle I look at GST implementation, it's burdening and even I feel the burdening pinch!" Junz said

Standard of living will be reduced drastically with higher cost of living especially so in Sabah.

Firstly, dining in restaurants will certainly be more expensive that it already is. 

With GST taking over service tax 6%, total bill plus service charges 10% will now be charged GST 6%. 

Any normal citizen on the streets will have to pay extra 6% GST for the bills on basic requirements of a simple lifestyle such as phone bills, Internet bills, medical insurance, general insurance, electricity bills above 300 units usage, Astro bills etc 

"These are the basic expenses which I could think of and that's on top of other daily necessities." Junz said 

Junz who is also DAP Sabah Organizing Secretary, claimed that Najib statement, which said no country had given that many exemptions than Malaysia has and it showed the government did not want to burden Rakyat, was very misleading.

"When items are listed in the GST exemption, it actually indirectly means that the prices will absolutely increase." Junz claimed 

For instance, prices of houses would definitely increase though it is exempted from GST. 

The building materials are charged with GST but developers will not be able to claim back the extra GST portion from the government because houses are exempted from GST. 

Thus the costs of house developments will increase and developers will have no choice but to increase the prices of houses to pass on the burden to purchasers. The dream of younger generations to own a house is now a dream too far to reach. 

Another instance is health & medical fees. Several medical equipments used, contractors engaged by hospitals will be charged with GST but hospital is exempted from GST. 

In similar fashion as housing industry, costs of hospital operations will increase thus the medical fees because it's exempted from GST and cannot be claimed back from the government.

On top of the increased general medical fees, there may also be additional 6% GST on doctor consultations, depending on whether the doctors are outsourced specialists or hospital employees. 

Likewise for Education which is also exempted from GST. 

Private Colleges are likely to increase their fees soon because all commercial rentals, electricity etc are charged with GST and thus colleges will pass on the burden to students. 

Chinese schools might also increase the school fees. I hope that government schools will absorb the GST impact and will not increase school fees. 

Bad news for residents staying in Condominiums or apartments. 

Water is not GST chargeable for normal households but it's chargeable for condominiums properties. All services and repairs costs incurred by management are GST inclusive. However condominiums management is exempted from GST and thus will not be able to claim back from government. Similarly management will increase the fees. 

On the commercial side, it's totally unfair for government to keep telling traders not to increase prices. 

Most business operational costs will inevitably increase because all basic utilities costs incurred commercially will be charged with GST such as electricity, water, rental, phones and so forth.

"Can the relevant Ministers please TEACH the business owners how NOT to increase prices under such circumstances? That's on top of the recently increased water charges of 100%. How is business going to survive without price increment in Sabah?" Junz demanded government to explain. 

Investments on commercial lots and shophouses will also be affected negatively in the sense that bank, as I have been informed, will not finance the GST portion of 6% incurred during purchases. 

If a commercial lot costed RM1 million, the purchaser would have to pay RM60,000 just for GST portion. 

I strongly propose to banks to consider financing the GST portions to help investors buffer the impacts.

"Bottom line is consumers must be prepared for very tough financial years ahead because the way GST is structured in Malaysia is surely burdening every consumer no matter what the govt assured." Junz concluded.