Many students at the forum appeared unconvinced by the explanation given by Umno Youth's GST task force member Lokman Noor Adam who was bombarded with tough questions and cynical jeers from the floor as he tried to explain Putrajaya's reasons for introducing the consumption tax on April 1.
“If you say the government is trying to save money, then why are they awarding contracts to Bumiputera who charge higher prices for the tender when there are cheaper options? It doesn't make sense,” one student pointed out.
“And when you say you want to try and save money, and that's why we have GST, are you also cutting down on the prime minister's utility bills and such? Shouldn't he be paying for it himself?” the student added.
During his presentation, Lokman insisted that the GST was necessary to tackle the government's growing deficit and increase its revenue base.
The former PKR youth leader also claimed that the new tax scheme would boost the government’s revenue collection.
He said Putrajaya stands to gain RM23 billion for 2015 and RM33 billion beginning 2016, adding that the increased revenue would open up the government’s purse on public spending, which would benefit the people.
But the students remained sceptical; one claimed the government’s push to roll out the GST suggested it was really “desperate for money”.
“I don't know… it just seems to me that the government really wants to tax everyone because they are so eager about it. It's like they are desperate for our money,” the student said.
Lokman did not address the question but maintained that Putrajaya's revision of Budget 2015 included a cut in operating expenditures.
He also maintained that the GST was necessary because of Malaysia's mounting deficit which, was among others, caused by maintaining subsidies on basic goods like fuel and food.
He also said the subsidies were proof that the government was only interested in helping the people, unlike what was claimed by the opposition.
“We didn't have that much money because we had to spend RM20 billion yearly on subsidies… it is not true that we do not want to help the people,” he said.
But PKR vice-president Rafizi Ramli who was also on the forum panel, scoffed at Lokman for echoing the government’s explanation, saying it showed a top-down mentality.
“Lokman, when you said the subsidies the government give, the book vouchers the government gives, you must never forget that all that come from the people's money, from the tax they pay.
“So don't ever tell these students to be grateful because these things are rightfully theirs,” Rafizi said, to loud applause.
Earlier during the debate the federal opposition lawmaker claimed that Lokman and the BN government had still to provide concrete “moral justification” to introduce GST at a time when living costs were sky high.
The Pakatan Rakyat opposition bloc has been opposing the implementation of the consumption tax when most taxpayers were facing austerity on the grounds that while the tax would be beneficial, now was not the right time to push it out.
The opposition pact claimed Putrajaya wanted the GST to offset the billions of ringgit in losses incurred through leakages and corruption annually, insisting that the new tax is necessary if the government was more prudent with taxpayers’ monies.
Since announcing the GST last year, the Najib administration immediately launch a public relations campaign to explain the new tax system in a bid to contain a public backlash.
A survey done by Malay Mail Online found that the public remain nescient about how the tax works and majority are still sceptical that prices of goods would remain relatively low despite the government's repeated assurance that inflation is expected to stabilise after the first year of GST.
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