The So-Called 'Janji Ditepati '
anispauzi
Wednesday, January 15, 2014
The price hikes are ‘awesome’. The withdrawal of sugar subsidy, the new electricity tariff increase (15%-18% starting next month), the replacement of SST (Sales and Services Tax) to GST (Goods and Services Tax) and the latest increase in toll prices which will take effect starting next months are driving the consumers crazy. These hikes are subsequent and too much for consumers. While the consumers are just adjusting themselves from the withdrawal of sugar subsidy after the announcement of Budget 2014, then without warning, came other price increases which are quite burdensome to the consumers.
A simple economic theory is: tax is one of the major sources of government’s revenue. This theory is a known fact to all and from the Islamic perspective, imposing tax is justifiable on the ground that the government is responsible to fulfill the basic needs of its citizen. However, the imposition of tax should not be heavy which may result in killing the work incentives of the tax payers.
I opine that the government should administer its financial position in a better and more effective ways like eliminating corruption in its dealings and should not spend extravagantly at the expense of the citizen. The ministers must realise that they are chosen by the rakyat not to thicken their own pockets but as a representative to voice out their opinions and hardships whenever necessary. The time has come when the ministers have to actually realize their promises during the General Election before. The price hikes came one after another and the Malaysian Rating Corporation(Marc) chief economist Nor Zahidi Alias said the main concern was that a slew of increases were being imposed at about the same time.He added, “Sugar and fuel prices have gone up and the electricity tariff hike will take effect soon.This will cause an upward pressure on consumer prices”.
TNB being the monopoly in the power industry is not hesitated in its decision to increase the tariff with the justification it is earning less than the cost it bears. Without major competitors in the industry, the customers are given no choice because whether we like it or not, we have to follow because a rejection will not affect TNB at large and yet we are affected which means no electricity. Nevertheless,some argues that competitors in the power industry is not a good idea because in the end the customer will be the victims of price competitions among the suppliers.
Regarding the anticipated toll hikes which will take effect next month (speculated to be between 50 sen to RM2), I think this is another way for government to take the citizen’s money legally. The government, holding a large part in the toll concessions should have a say in the decision and not to give the excuse that this increase is unavoidable due to the agreement with the private sectors. Majority of toll concessions are owned by government entities such as Permodalan Nasional Berhad (PNB), Khazanah Nasional and the Employees Provident Fund (EPF).
To continue, we must realize that the price hikes will not stop just there. For example, the restaurants’ operators will increase the food prices. We, as a concerned customer could not say much since this will go back to the actions of the government itself, in increasing the prices. In a short run, the cost of living will go up and will limit the customers’ spending. This situation will lead to another financial problem which shall not be discussed here.
In a nutshell, the government should comply to its promises to reject negative elements to safeguard people’s interest. I am not willing for my beloved country to worsen financially as much as I am not willing to see the governments are bullying the citizen in tricky ways. If this continues, the government must not be surprised to see any movements from the side of the people who are silently oppressed.
anispauzi
A simple economic theory is: tax is one of the major sources of government’s revenue. This theory is a known fact to all and from the Islamic perspective, imposing tax is justifiable on the ground that the government is responsible to fulfill the basic needs of its citizen. However, the imposition of tax should not be heavy which may result in killing the work incentives of the tax payers.
I opine that the government should administer its financial position in a better and more effective ways like eliminating corruption in its dealings and should not spend extravagantly at the expense of the citizen. The ministers must realise that they are chosen by the rakyat not to thicken their own pockets but as a representative to voice out their opinions and hardships whenever necessary. The time has come when the ministers have to actually realize their promises during the General Election before. The price hikes came one after another and the Malaysian Rating Corporation(Marc) chief economist Nor Zahidi Alias said the main concern was that a slew of increases were being imposed at about the same time.He added, “Sugar and fuel prices have gone up and the electricity tariff hike will take effect soon.This will cause an upward pressure on consumer prices”.
TNB being the monopoly in the power industry is not hesitated in its decision to increase the tariff with the justification it is earning less than the cost it bears. Without major competitors in the industry, the customers are given no choice because whether we like it or not, we have to follow because a rejection will not affect TNB at large and yet we are affected which means no electricity. Nevertheless,some argues that competitors in the power industry is not a good idea because in the end the customer will be the victims of price competitions among the suppliers.
Regarding the anticipated toll hikes which will take effect next month (speculated to be between 50 sen to RM2), I think this is another way for government to take the citizen’s money legally. The government, holding a large part in the toll concessions should have a say in the decision and not to give the excuse that this increase is unavoidable due to the agreement with the private sectors. Majority of toll concessions are owned by government entities such as Permodalan Nasional Berhad (PNB), Khazanah Nasional and the Employees Provident Fund (EPF).
To continue, we must realize that the price hikes will not stop just there. For example, the restaurants’ operators will increase the food prices. We, as a concerned customer could not say much since this will go back to the actions of the government itself, in increasing the prices. In a short run, the cost of living will go up and will limit the customers’ spending. This situation will lead to another financial problem which shall not be discussed here.
In a nutshell, the government should comply to its promises to reject negative elements to safeguard people’s interest. I am not willing for my beloved country to worsen financially as much as I am not willing to see the governments are bullying the citizen in tricky ways. If this continues, the government must not be surprised to see any movements from the side of the people who are silently oppressed.
anispauzi
iium
This article was published in The Malaysian Insider on 27th December 2013
