Gerakan stresses need for an inclusive, balanced and responsible Budget 2015 Kohilan: Government plays key part in financial remediation effort along with public Press statement by Gerakan Vice President Datuk A. Kohilan Pillay 9 October 2014 On the eve of Budget 2015, Gerakan Vice President, Datuk A. Kohilan Pillay was upbeat on another people-friendly budget slated to be tabled in Parliament tomorrow by Prime Minister YAB Dato’ Sri Najib Tun Razak. He expressed confidence that the government is committed in addressing various concerns and suggestions received from the public through the Budget 2015 Campaign launched in August. Kohilan reckoned that the rising cost of living and the implementation of Goods and Services Tax (GST) scheduled to be implemented on 1 April 2015 warrants considerate budgetary measures to mitigate its impact on ordinary Malaysians. Kohilan supported the continuation of government’s subsidy rationalization efforts to trim its fiscal deficit and public debt. However, he believed that fiscal consolidation should not be done solely through subsidy rationalization, the government should also exercise prudence in government procurement and instil greater professionalism in civil service in order to curb leakages and malpractices. He also stressed that the government must also give more attention to the development expenditure rather than the operational expenditure in order to explore our untapped potential as a developing country by embracing a healthy and reasonable ratio in Budget 2015. In addition, Kohilan also agreed with calls to increase Bantuan Rakyat 1Malaysia (BR1M) assistance to levitate the people’s burden over rising cost of living and also as a governmental effort to offset the expected impact from GST, but he maintained that the scheme must cover different income groups with targeted and comprehensive non-financial welfare assistance ready to reach out to those in need concurrently. In view of the GST implementation due in 2015, Kohilan echoed public’s call for the introduction of greater tax relief on personal and corporate income tax in order to offset the impact of GST. In this regard, Gerakan proposed a 3% tax relief for individuals earning less than RM 4,000 as they would be mostly affected by GST and subsidy rationalization. Households with children and aged parents should be given an additional tax relief of RM 1,000 respectively. Kohilan also stressed on the need to improve the quality and productivity of domestic workers, instead of over-relying on foreign workforce and also as a transformative initiative to gradually introduce knowledge-based economy in the country overcoming the middle income trap. As such, he proposed a tax exemption be given to companies that embrace internship or apprenticeship training programs for university and technical school graduates. Furthermore, Kohilan also lauded government’s effort in enhancing public transport system such as the ongoing Klang Valley Mass Rapid Transit Project and more affordable houses under Perumahan Rakyat 1Malaysia (PR1MA) and Program Perumahan Rakyat (PPR). He asserted that Budget 2015 must continue to ensure adequate allocations to provide for continual development for both sectors which are deemed vital for urban living but also at the same time susceptible to economic fluctuations that could undermine the basic social welfare. Kohilan also called on more tax rebate items be introduced in Budget 2015 for disabled and maintain incentives of RM10,000 grant and 10% tax deduction to encourage private companies to establish childcare centre or nursery at work place. He added that it is important that all quarters of the society are given the equal and considerate attention in the Budget 2015 and be part of the budgetary plan of the nation for the upcoming year. Apart from acknowledging the government’s decision to introduce prudence and austerity through the continuation of subsidy rationalization program and fiscal consolidation, Kohilan reiterated that the government must also be part of the financial remediation effort and play the exemplary role in leading a national movement towards improving the financial status of the country.
Posted on: Thu, 09 Oct 2014 01:52:14 +0000
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