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Oppose the GST! Tax the rich and save the rest
Malaysian Socialist Party (PSM) Press Statement - November 27, 2009
GST – The Goods and Services Tax if implemented will not be a problem at for the 6% richest in the country, but it is certainly too much for the 70% poor and the rest!
PSM is disappointed with the BN Government for announcing their decision to go ahead with the regressive Goods and Services Tax or GST. One would have thought that even the BN would have more sense than to announce a tax that will further burden the poor at this point in time when we are in the midst of the worst recession since the 1930s, when more than 50 per cent of the people can't make ends meet, while the Gini-coefficient is steadily deteriorating, signifying worsening inequality in income distribution.
However the PSM isn't too surprised as the BN Government's fascination with the GST is quite consistent with its infantile belief that "what is good for big business is good for all Malaysian". This neoliberal dogma asserts that a country's economic growth is predicated upon the growth and profitability of big business, and that wealth will trickle down to the poorer strata. The fact that the poorer 70 percent of mankind have become even poorer under the regime of Structural Ajustments (euphemism for withdrawal of subsidised social services) and privatisation, does not shake the confidence of the neolibs.
The institution of the GST is a blatant attempt to shift the tax burden onto the ordinary rakyat. Corporate tax has dropped from 40 percent of profits in 1988 to its current 28 percent. With the GST kicking in, we can expect corporate tax to decline further.
Insensitive, anti-people initiatives like the GST strengthen the PSM's resolve to work towards the replacement of the corporate-driven BN by a more humane people centred alternative.
Let's make the anti-GST campaign our opening salvo for the conquest of Federal power in 2011! If you can't persuade the BN to fulfill the wishes of the majority, we will just have to replace them. The PSM urges all those who care for justice and social solidarity to come aboard this campaign. The call by BN to implement GST calls for a class war with the BN who supports a Tax system which will benefit a few at the expense of many. It is time to stand with the many and to call for the non implementation of the GST.
Dr. Jeyakumar
Central Committee Member
Party Sosialis Malaysia
Tel: 019-5616807
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