And this is why we can’t have nice things: Prime Minister Datuk Seri Najib Tun Razak revealed that only one out of every ten Malaysians pay taxes.
The Prime Minister mentioned this as he was justifying the federal government’s need to raise revenue, while simultaneously keeping expenditure on broad-based subsidies such as fuel and sugar, down.
Najib, who also holds the Finance Ministry portfolio, also said that the size of the Malaysian civil service would grow every year, but when national revenue fails to follow suit, the government would have to resort to more borrowing. He also mentioned the goods and services tax (GST) as a measure that could generate more revenue for the country.
“When I do not announce any bonus during the tabling of the Budget, then it is not considered a good budget. But each time bonus is dispensed, it is RM5.6bil in spending a month,” Najib said at a 1Malaysia People’s Aid (BR1M) presentation ceremony at his constituency in Pekan, Pahang.
“We say our country’s economy is mid-high income and a lot better than other countries. But the question that is on our minds is why are petrol subsidies reduced and the sugar subsidy removed when our economy is already good?
“We have to explain that the rationalisation is to avoid a situation where we have to borrow money,” said Najib, who pointed out that money saved from cutting subsidies was then channelled to more equitable ways of helping people, such as BR1M.
Najib added that BR1M could also help the people settle debts, and, in principle, this was also helping those in need.
“It is meritorious in Islam to help others. It is okay if the Opposition wants to denounce our efforts, as long as we hold on to the principle of helping others,” he said.
Source: The Star Online
