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Saturday, October 18, 2014

The People eCONomy- where has the RM13.8 billion gone to?



Where is the RM13.8 billion previously collected by SST gone to? It hasn’t gone anywhere. It’s in the system. The government officers better buck up. What was previously collected under SST is now collected under GST. We havent lost anything that was collected under GST previously. 

That is the reason we will implement GST next May. Because its a more effective tax collecting mechanism. 

The RM13.8billion is not an spending item- it’s a revenue item. We don’t now take money to pay the RM13.8 billion out. We collect it under GST.  Think revenue, think GST. 

Who does the maths for FM Najib? 

This isn’t a case of denigrating the hard working government officers who toiled day and night for several weeks so that the FM can have his so many minutes of fame.  This is case of misleading argument.

A few days ago, questions were raised about basic maths. Some points were raised about the mathematics of GST. The estimated proceeds from GST is RM23.2 billion. This is easily understood. But the government says, we have to deduct RM3.8 billion because, some goods taxable under GST are exempted. That too can be understood. The net value of the proceeds under GST will be RM19.4 billion.

From now, the argument gets murkier. The amount that was to be collected under SST would have been RM13.8 billion. We lost this amount says the government planners and says the clueless FM.

No, we don’t lose any money. We do not take RM13.8 billion from our revenue and pay it to somewhere else. The money is there.

The government says we have to deduct this- minus 13.8 billion; we are left with RM5.6 billion.  Then we used the GST proceeds to pay off BR1M totaling RM4.9 billion.  So we have the net GST of RM690 million.

The government must take us for fools. Whoever did the maths should be sacked immediately confirming my personal view that those who entered government service are intellectual gnomes. We don’t lose the 13.8 billion anywhere. It’s still there.

Let us warn the government, don’t steal this RM13.8 billion.

Hello- the tax revenue not collected by SST is now collected by GST. We don’t lose anything. We still collect that RM13.8 billion not collected by SST but now collected by GST. We still have RM13.8 billion.

We still have the RM19.4 billion after deducting the GST-free items. From here we pay the BR1M of almost RM5 billion, 14 over billion.

So again is not a case of denigrating civil servants when we point out this fallacy. The RM13.8 billion is still in the system. The government is not taking RM13.8 billion and paying out somewhere.

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