Read on Twitter
I get people asking about about GST and the RM44 billion collection.
I'd like to highlight, the RM44b did not account for refunds that needed to be paid.
Exmaple in 2017: GST revenue was RM44.4b (but unpaid refunds were RM28.7b). If paid, GST revenue would have been RM15.7b
I'd like to highlight, the RM44b did not account for refunds that needed to be paid.
Exmaple in 2017: GST revenue was RM44.4b (but unpaid refunds were RM28.7b). If paid, GST revenue would have been RM15.7b
For 2017 RM44.4b GST numbers see Table 2.1 Anggaran Hasil Perbelanjaan: https://www1.treasury.gov.my/pdf/bajet/maklumat_bajet_kerajaan/2019/hasil/seksyen2.pdf
For RM15.7b unpaid 2017 refunds: see PAC report page 473 https://www.parlimen.gov.my/pac/review/docs-201-243.pdf
For RM15.7b unpaid 2017 refunds: see PAC report page 473 https://www.parlimen.gov.my/pac/review/docs-201-243.pdf
It isn't as simple as, "the GST would have collected RM44b!"
It's complicated, with all the cash accounting problem in it.
I like GST, but need to be honest about the unpaid refunds la.
It's complicated, with all the cash accounting problem in it.
I like GST, but need to be honest about the unpaid refunds la.
And if GST wasn't repealed, it wouldn't have helped in this kind of environment either.
Consumption tax, GST or SST, tracks consumption. It's stable up to the point consumption is stable.
What do you think is happening to consumption?
Consumption tax, GST or SST, tracks consumption. It's stable up to the point consumption is stable.
What do you think is happening to consumption?
I'd also like to highlight that the RM44.4b GST collection in 2017 was net in the sense that it was total after substracting paid refunds.
Not minus unpaid refunds.
That "net" comes with a big caveat. Many have missed this fine print.
Not minus unpaid refunds.
That "net" comes with a big caveat. Many have missed this fine print.
In any case, you can reconstruct the GST revenue numbers with the unpaid refunds to get you "net net" GST revenue for all the relevant years .
The PAC report has enough information to help you figure it out without relying on tweets: https://www.parlimen.gov.my/pac/review/docs-201-243.pdf
The PAC report has enough information to help you figure it out without relying on tweets: https://www.parlimen.gov.my/pac/review/docs-201-243.pdf
GST could have been defended (I myself proposed to cut the rate to 4% pre-election instead of complete abolition way before it became a minor popular position to take: http://maddruid.com/?p=16375 ) but the refunds issue really made it difficult to stand by GST after awhile
In any case, the pressing issue of the day is not GST. It's about breaking that legal limits that would exist with or without GST to cover existing gaps and minimize the depth of this depression.
