1. Malaysian Prime Minister Datuk Seri Mohd Najib Tun Abd Razak’s comments on 26 October 2017 that the opposition’s alternative budget is contradictory for 2018 are based on the fact that the country will lose much more revenues, thus making it difficult for the next government to revitalize the economy. It would imply that the burden imposed by tbe new form of taxation based on sales and services tax will only fall on a selected few furthermore with the abolishment of the Goods and Services Tax (GST) which is more equitable.
2. Since only a small percentage of Malaysians are paying taxes, the government is seeking an equitable form of taxation which will help to increase revenue and which in turn can be used to serve the people through the development of the health and education sectors.
3. In conclusion, Malaysians are generally paying lower amounts of tax compared to other countries. As such, there is no cause for concern that the government’s proposed 2018 budget will seriously impact on personal and corporate taxes. Instead, it will help to stimulate the economy.
4. It can be deduced that the opposition is simply gambling to win the next election slted for next year by garnering more popular support and by creating a negative impression of Najib’s budget which will be seen as taking more public money.