DAP Johor will be launching the Anti-GST (Goods and Services tax) movement in Labis and Pontian to exert pressure on the Deputy Finance Ministers for the implementation of the regressive tax.

GST, which is scheduled to start in April next year, received numerous opposition from Pakatan Rakyat leaders who say that the tax would burden those of the lower income group.

“GST is a regressive tax which would affect the economy and Malaysians of all races, especially the small businesses,” said Kluang MP Liew Chin Tong.

He added that the tax would reduce the rakyat’s income and small businesses would suffer when the rakyat subsequently reduce their expenditure.

During his budget speech, Prime Minister Najib Razak announced increasing the BR1M (Bantuan Rakyat 1 Malaysia) payout. However, Liew believes that this would not balance the stagflation in our economy. This refers to the lethal combination that economy would suffer as a result of inflation, slow economic growth, and high unemployment rate.

“This stagflation would affect the lives of all races, whether you are a Malay, Chinese, Indian, Kadazan or Iban.”

The Kluang MP said that the campaign which will be centered in Labis and Pontian encourages locals to share their plight in relation to the tax to pressure their respective BN MP’s to respond to the opposition of the rakyat. Chua Tee Yong (Labis MP) and Ahmad Mazlan (Pontian MP) who are also the Deputy Finance Ministers, would be forced to deal with qualms from the rakyat opposed to the tax, he said.

The DAP MP also drew attention to the CGT (Capital Gains Tax) and Inheritance tax proposed by the Pakatan Rakyat coalition while presenting the alternative budget to replace the GST.

“Both the proposed alternatives direct the burden of tax on certain segments of the people who generate profit from stocks and property prices, which is preferable to taxing the rakyat in their daily expenditure,” he added.

The alternative budget which proposed a solution to replace the GST was dismissed by Prime Minister Najib Razak who alleged that CGT would cause capital flight that would lead to a crash of the stock market.

Opposition leaders criticized the Prime Minister’s comment, calling it ‘silly’ and unfounded, since countries such as the United States, Germany, Japan, UK and Australia do not experience capital flight from CGT. -The Rocket