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Wednesday, April 22, 2015

BN MP lamented costly GST for his son's medical bill

BN's Sepanggar MP Jumat Idris has lamented the costly impact of the new Goods and Services Tax (GST) on health care services after having to fork out RM1,200 for it.

Jumat said he was billed the amount after taking his son to a private hospital for treatment.

"Consultation cost was imposed with a six percent (GST) and when paying for treatment cost, it was another six percent.

"My son was admitted for a nerve disease and curved spine. The treatment cost for the nerve disease alone was RM20,000 and the GST was RM1,200.

"Other bills have yet to come but I already have to pay RM5,000 today. It is truly a burden to the rakyat," he said in a Facebook posting.

As such, Jumat said he understood the rakyat's burden in facing the GST and pledged to to take the matter up in the coming Parliament session.

"This May I have go shout in Parliament," said the parliamentarian from Sabah.

Ironically, according to parliamentary records, Jumat voted in favour of the Goods and Services Tax Bill which was passed on April 7, 2014.

GST came into effect on April 1 this year at an initial rate of six percent.

A coalition of civil society groups are organising a mass rally in Kuala Lumpur next Friday, which is Labour Day, to protest against the new tax.

1 comment:

  1. GST as a system of taxation is fine as long as its purpose is to raise funds towards identified and targeted social and public programs, e.g. national health service, broad-based work displacement and pension benefits, etc. In short, as it is a broad-based tax imposed on all spectra of the consuming population the funds raised should likewise be spent on broad-based social and welfare programs. At the same time, in implementing GST regards should be given on unintended consequences, e.g. rise in healthcare and basic living costs. Thus, the exemption list should cover all basic necessities like food, medical care, some elements of clothing, shelter, etc. It requires more analysis, thought and diligence on the part of the Customs Department but so be it. GST should never be implemented to cover deficits in government performance - that is a crime. To plug holes in government performance, what is required is eradication of corruption, inefficiency and value for money spending - not more taxation. At the same time, do not forget that stricter enforcement of income tax collection is also required because taxes on income is still required to finance the overall government administrative machinery and developmental programs. This should not be burdened on to consumers but to income generators as the more development there is, the more income can be generated. For consumers, if they are to be taxed on their consumption, it is only fair that they get benefits back through social and welfare programs.

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