2. GST - Go Sabah Trap

What is the impact of GST to Sabah?  Go Sabah Trap!!!

If an average consumer -  rich, medium, poor spends RM5,000 ?? on the GST taxable items per year and that for 4,000,000 consumers including tourists, the Federal coffer stands to get RM12b (can be much more) in GST per year.

How much would Sabah get in return in 2015 and beyond?

Would it be just an allocations of RM2-3 billions as normal?

The extra revenue from Sabah would be used for the greedy CRIMINALS in Government for their own agenda in Barang Naik, Bila Naik, Baru Naik , Berapa Naik, Banyak Naik in massive corruption and profligacy.

The overall impact of GST @6% is adverse for Sabah as prices already increasing would further increase resulting in general hardship for all be they rich (not that rich), working class, pensioners, senior citizens without pension, lower wage earners even with minimum wages starting 1.1.2014.

What would this hardship be translated into?

If the semi rich people decide to stop spending on capital items all attracting GST6%, a lot of the existing local industries like entertainment, furniture and cars etc would likely to close down, the rich or super rich largely from the BN/UMNO cronies would spend their money outside Sabah added to the downward woes of dwindling consumption.  These groups (about 10% of the 4m) would really have the greatest damaging impact of much reduced domestic consumption.

The working class would not have the level of the disposal income to spend as they have done so prior to GST and so the level of consumption would also decrease.

No need to mention the pensioners and those senior citizens without pension or steady income, and the lower income group would have nothing much to spend except two little meals per day.

So the next thing we would expect is local industries and many shops in Sabah would close down making many people jobless and spiral of curses would go on as burden to live is worsening.

What would all those increasing jobless be impacting in the families?

So if Federal Government want to implement GST 6%, then it must standby with at least 70% of the GST collected in the first few months/ years of implementation to resolve the economic crisis (considered the normal teething problem of the introduction of GST).

The economic crisis would sure to precipitate because of the following reasons:-

1.      Sabah is very behind in domestic items industries as GST is viable for industrialized nation;

2.      Any new structure or system would cause apprehension for the businesses and consumers.

3.      The first rate @6% is too much tax and 10+6-6 (after GST) is not lower prior to GST after repeal of sales and service tax and Sabah is  likely to see double taxation.  If any politician wants to think GST 6% is lower than previous tax, please standby the billions of Ringgit to fill in the gap as an irrevocable GUARANTEE.

4.      Why want to collect so much from Sabah to bring curses to all?

5.      Tourism sector would suffer as many businesses and shops to support this sector would not be there.

Conclusion for this article (more to come on GST)

Sabah be zero rated for 5 years until 2019 and see that the domestic items industries is fully developed by then.