Hadi: No need for GST if leakages plugged
By Emmanuel Santa Maria Chin
The Malay Mail Online25 March 2018
PAS president Datuk Seri Abdul Hadi Awang speaks during a youth dialogue organised by Gagasan Sejahtera in Shah Alam March 25, 2018. — Picture by Miera ZulyanaMore
SHAH ALAM, March 25 — Malaysia could do away with goods and services tax (GST) altogether if the federal government were better at managing its wealth, PAS president Datuk Seri Abdul Hadi Awang asserted today.
The Marang MP was explaining his party’s pitch to abolish the GST as part of its GE14 manifesto at a youth dialogue organised by Gagasan Sejahtera held at the De Palma hotel here.
“If it was managed properly, without leakages, wasteful projects, for sure there are taxes that can be abolished,” he said.
He pointed to Japan as an example, saying the Far East country’s government subsidised 99 per cent of its agriculture production, leaving the farmers only having to pay 1 per cent of the cost.
“They sustain and manage the industry from the money collected from taxes, hopefully this can happen here.
“Without bribery, abuse of power, people will be fine with paying taxes,” he added.
Abdul Hadi reiterated the same point when pointedly asked about PAS’ plan to manage the national debt during a question-and-answer session later.
“What happened today is the mismanagement of national wealth, its natural resources and the profitable capabilities of its people.
“Leaders who are always thinking about implementing taxes are not fit to be leaders. Taxation is the result of an emergency set by the government, but is Malaysia currently going through an economic emergency?” he retorted.
He asserted that Malaysia would be in a better financial state if its resources were managed well.
“There have been Muslim governments in the past, during the Islamic civilisation, that could cut taxes when it had finances and resources in abundance,” he said, referring to the Ottoman empire that had controlled southeast Europe, western Asia and northern Africa for nearly six centuries in the last millennium.
However, he did not elaborate and instead defended his Islamist party’s concept of selective tax implementation, where businesses and the rich would be taxed the most based on their wealth.
“These Muslim governments did not tax monks and priests because they were aware religious figures were not wealthy, and instead taxed the richer communities who could afford it,” he said in reference to the GST which was implemented across the board.
He also explained that Muslims will still have to pay for zakat if PAS took over Putrajaya as the religious tithe is different from taxes.
“Muslims will have to pay the compulsory zakat, which itself brings rewards from heaven.
“For non-Muslims, they will face a tax, while the zakat will be paid by those who can afford.
“Of course if the country has enough funds, taxes can be abolished outright, but the zakat contributions must stay,” he said.
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