We're already into the second month of GST. The debate is still
raging on with no signs of letting up. A day hardly passes without a
pundit propagating new GST ideas or a stand-up trading GST jokes.
I
can no longer sit on the sidelines and look on. It's time to weigh in
with some thoughts and theories. So here we are, eight burning
questions:
1. Recently Washington Post, Hindustan
Times and WSJ proclaimed Malaysia the world's corruption champion, ahead
of Indonesia. Does GST have anything to do with this?
What?
No. GST and corruption are, semantically at least, as different as
chalk and cheese. You don't have to be corrupt to have GST. And you
don't have to have GST to be corrupt. Of course, you could be more
corrupt if you had GST. And you could have more GST if you're more
corrupt. If you run a nonparametric polynomial regression, you'd find
that corruption and GST are statistically independent with a very low or
even negative correlation coefficient. We're just starting on and
you're already impressed with me.
GST isn't new and not
created by Barisan Nasional as alleged by many conspiracy convicts. In
fact its origins preceded the famous Daeng Chelak and his four Bugis
brothers. GST as a concept dates back to the Ming or maybe Qing Dynasty
in China, more than 2000 years ago, when King Ming or King Qing reigned
and floated the novel idea of taxing his subjects' opium consumption to
stem widespread addiction and finance the construction of the Great
Wall. However this idea was rejected by all 1220 imperial eunuchs. It
never took off until only 10 years ago when China introduced GST to
support its addiction to LV bags and high-speed trains. There's already
plan to increase GST to 25% to feed its addiction to GST.
In
the case of China, more state officials were caught and shot for
corruption in the period before GST, proof enough that GST and
corruption are either unrelated or unfriended. I'm not suggesting that
Malaysia use China as a model for anything. The use of guns and live
bullets is certainly harsh.
2.
Bersih, Perkasa, Gasak, Tibai, Tembak and other well-meaning NGOs have
all accused the government of not allowing enough time for the
businesses and the consumers to understand and prepare for GST.
Is this a question or an answer? I'm not going to answer an answer.
Let
me repeat, GST isn't the brainchild of Barisan Nasional. First, you
need brain to come up with brainchild. Second, although Malaysia is late
in the GST arms race, the idea isn't exactly new. It's been on the
back-burner since 1962, when our country wasn't under Barisan Nasional
and Datok Senu was minister for something. There's no, or maybe less,
corruption at the time because all projects were given to either JKR or
LLN. None of the projects cost more than RM1 million and only one
project was delayed longer than one day.
Since then,
GST was deferred on the eve of every election. From 2000 to 2014 it's
postponed every six months (i.e 28 times). From January to March 2015
we had a GST dry run where Jaya Grocer was allowed to increase the
prices. The idea was to allow both supermarkets and consumers to get the
feel of GST. When GST kicked in on 1 April, supermarkets increased
prices again based on actual GST (6%) and consumers weren't supposed to
even look surprised.
Even with so much GST education
and burning-in, most people are still confounded and dumbfounded (or
just dumb). With no way out, they've started calling GST and
hard-working ministers all sorts of nasty names to register their
displeasure. This is unfair and ungrateful. Since this blog has been
officially certified expletives-free, I won't get drawn into naming the
nasty names for now. There's already an app and a video game you can
install for free.
3.
We're also aware that out of 6 million Chinese and non-Chinese
registered businesses in Malaysia now, 94% pay only road tax. Can
anybody conceivably escape GST?
GST is a tax on
your consumption, not a tax on your legal, or illegal, income. You can
only avoid GST if you're an anorexic, or a breatharian living on cosmic
microfood. For the rest of us, the non-anorexic, GST is as sure as
Subang Jaya traffic jams. You've to pay GST even if you scored all A in
your college final year.
Before I forget, not all
products or produce or services attract GST. Some products are so ugly
and repulsive that they don't attract GST. As of this morning, 1767
products are either GST-exempt or zero rated, mostly vegetable and rare
metals listed on the periodic table. Cooked or canned kangkong is deemed
attractive, and attracts the 6%.
A smart consumer eats
only raw rice and raw ice. He lives and breathes around the 1767
products, whose prices had actually been increased 100% well before GST.
Clever is as clever does, so to speak.
4. Are Malaysia and Canada the only major economies with GST now?
You're
innumerate. And Canada, hahaha, you're funny. The number of countries
in the world today is 200 or 202, depending on whether you recognize
Palestine and Perlis as independent countries. 160 have imposed some
kind of consumption tax under various names and guises. These countries
include some that were already cruel even before GST, like Zimbabwe and
Singapore. North Korea has deferred its GST until its population consume
something.
Most countries have increased GST rates
over the years to keep up with Norway. This was made possible by either
changing the government or changing the population or both. Some
countries that can't change their government or population, change the
name from GST to VAT, then back to GST.
5. GST is fair, progressive and gentle. Why Malaysians are against it?
It's in the genes. People don't like to pay more. Actually people don't like to pay.
I'm
not sure who's the pr consultant engaged by the government. Maybe the
same guys who helped the Tourism Malaysia promote our country as a
distress destination. There's been a lot of confusion, due mainly to
miscommunication and conflicting statements. Like, the government
announced that GST is good for the people. But 1767 products and
services are GST-free. If it's good, then why so many goods are without
GST? And why is GST only 6%, and not, say, 96%?
GST is
Physics. You just don't understand. I bought a variety of spices
(rempah) at Giant recently and was surprised to discover that rempah
kari daging is GST-free, but rempah gulai nasi dagang has GST. It's only
seven sen but you're still confused and up in arms. Is this a subtle
attempt to derail hudud?
As we're all about to resign
to an all-round price spikes, Ahmad Maslan dropped yet another bombshell
when he declared that 329 products are cheaper with GST. When pressed
for names of the products, he rambled on with veiled threats like how
his mother could read Quran and so on. The ploy worked because nobody
harried him further. Until the next day.
To be fair,
car prices did come down. The cheapest Mercedes C-Class is now
RM488,888. Before GST it's RM688,868. A hefty reduction of about RM
200K. Things is, I still can't afford it. Mercedes-mad Malay cronies are
generally happy that the price hasn't only dropped but also retained
all but one number 8.
The timing of GST introduction
couldn't be worse. April is a bad month for anything. And for GST,
every month is a bad month, so April is doubly bad. All kinds of
incoherent and impossible mumbo-jumbo seemed to bunch in in April, you
know, things like government debt, government jet, crooked bridge, J Lo,
Mongolian maid, and even the sultan or prince of Turkmenistan. Blame
other countries if you must, but make sure it's the right country.
6. Every consumer is technically poorer because of GST. But who's hardest hit?
Let me remind you one more time that GST isn't a Barisan Nasional's idea.
The
population pile hardest hit by GST are the unemployed, which include
the retirees, which include me. Among the retirees, the hardest hit are
those living off EPF savings, which again include, you guess again, me.
Among the EPF-dependant retirees, the hardest hit are those who eat
yoghurt, which again include, hahaha, me. In short, in the whole
country, I'm the worst hit.
There's no mitigation for
the ranks of retirees that I'm unfortunately part of. No recourse or
remedy to moderate the impact. Those on government pension might get a
hike if Cuepacs conmen managed to muscle in with yet another 100% salary
increase plus automatic upgrading to Jusa C for all government
employees, otherwise known as government servants. Don't fall for this
slick "servant" misnomer. It's nothing more than a misdirection to get
all of us to pity and defend this crowd. If you go to Immigration
Department to legalise your illegal maid (or yourself), you'd know who's
actually "servant" (hint: it's not your maid).
7. Since GST won't go away because BN will rule for as long as there's daylight, how do we cope?
Time to call forth your creative instincts.
Universiti
Malaysia Pahang responded to GST by inventing an anti-hysteria kit. At
RM8750 a set, it's devilishly cheap. This ghost-busting gear is fully
portable like portable toilets used by Bangkok motorists. You can take
it with you on supermarket rounds and should be handy when you see the
new grocery prices. Incidentally UMP is also planning to penetrate the
Bangkok motorists market, betting on the multi-tasking potential of the
kits.
A couple of old but intrepid classmates responded
by going into fig farming. Fig, not pig. But the way it's turned out,
they might've been better off going the other way. I don't know the real
economics of fig gigs, but it's nowhere near ketum or qat. But,
seriously, I think this sad act of denial and deviation is emotional
rather commercial. A fig tree is typically small and monotonous with
little decorative or therapeutic value. It bears an average of two small
fruits every ten or eleven years. You can easily get GST-free fresh or
dried Lebanese figs at Mydin for RM 32 a kilo while making friends with
the Nepalese cashiers.
But, of course, the joy of
picking your own figs is without compare. Plus, fig trees have no
history of violent reactions to your temper or pressure or abnormal
sexual energy. So you're in complete control.
I'm
slowly adjusting to GST, which inevitably involves some unpleasant
cultural changes. For example, I don't buy yoghurt now. Price of
Marigold yoghurt was RM1.39 before 1MDB stashed the cash in Cayman
Islands. It's RM1.95 now. I'm not sure which mathematical model those
people used to calculate GST and adjust the price. I don't have fig
trees to vent my anger on, so I just stopped slurping yoghurt. I read
somewhere that one gram of yoghurt breeds five billion friendly bacteria
cultures that keep us healthy. Since I don't eat yoghurt, I now have
only 1.5 billion cultures hanging around in my system. I'm less healthy
and less cultured. I no longer listen to classical music, look at
paintings, play the violin, attend operas. All in all, I'm less happy.
8. A friend said you've to change your lifestyle to cope with GST. Does this make sense?
Nothing
gets more overrated and glorified than "lifestyle"? What's a lifestyle?
Playing golf 23 hours a day? Is watering figs a lifestyle?
I
always tell my old classmates that I'm leading an action-packed
lifestyle because I watch Tanyalah Ustaz early morning and run early
evening. And read Arsene Wenger's football philosophy in between. But
whatever your lifestyle ideas are, it's worth revisiting your so-called
interests, hobbies or plain habits now that GST is lurking at every
turn. For starters, get rid of your pets. Talking to cats or dogs or fig
trees won't change anything, certainly not your CGPA. Pets and vets are
never GST-friendly.
Next for the axe is Astro. If you
take out live EPL games, Astro is TV2 in all but name. Why spend RM150
plus GST a month just to watch live football and lion-chasing-antelope
reruns? Drive to kedai mamak. The screen is bigger and crowds livelier.
The only downside of this high-life is that you might get high after
watching Chelsea playing with 10 defenders, and run the risk of crashing
into stray and free-running Myvis.
Just to sustain my
hectic lifesyle, I'm taking glucosamine for my creaking knees and
rosuvastatin (Crestor) to beat my cholesterol. Glucosamine is GST-free
but not Crestor. I still can't figure out why. My knees are more
important than my heart? I know the price increase is only RM8, but with
this whole psychology and dynamic, and the tragic thought of Ahmad
Maslan sardonically pocketing my money, how can I possibly go on with my
life, or lifestyle.
I'm now mulling the next step:
dump Crestor and buy a generic substitute, which is 50% cheaper. I'd be
contributing less to Krygyzstan economy. I hope this generic statin
isn't a placebo or a Nigerian hoax and is as good as Crestor. Otherwise,
I might end up with the ultimate change of lifestyle. You know what.
Did I get the country name right?