Barisan Nasional shadow budget 2019 entitled “People Economic Initiative” was revealed ahead of the national budget 2019. The shadow budget was announced by Rembau MP Khairy Jamaluddin, who holds the Finance portfolio in the opposition’s shadow cabinet.
One of the main highlights of the Barisan Nasional shadow budget 2019 was to bring back the Goods and Services Tax (GST) and implement nine tax regimes. GST was previously implemented by the Barisan Nasional government in 2015 at 6%. However, the Goods and Services Tax was replaced by the current government’s Sales and Services Tax (SST) in September 2018.
According to Khairy Jamaluddin, SST is a failure since it failed to bring down the prices of basic goods and items. He was quoted saying;
We need a more efficient and transparent taxing system and we will bring back GST but lower it to 3%
He also estimated that the revenue collected under the lower-rate GST would be about the same as SST, but solve the problem of tax evaders and leakages faced by the SST.
he shadow budget proposes the implementation of nine taxes. Six of these proposed taxes are new, such as the soda tax, which is predicted to generate an additional RM360 million annually, and the plastic tax, which is expected to bring in about RM1.46 billion.
The budget would also impose a capital tax on individuals whose accumulated wealth are beyond RM10 million yearly and a carbon tax on factories with a minimum of 25,000 metric tonnes of greenhouse emissions. Other measures proposed include a new charge on foreign remittance, a reworking of the current foreign workers’ levy, a short-term share transactions tax, and remittance tax.
Barisan Nasional would also continue with the 1Malaysia People’s Aid ( BR1M) payouts, but with a special system for the B40 income households to ensure the payouts reach the right target group. Megaprojects East Coast Rail Line (ECRL) and the Kuala Lumpur-Singapore High-Speed Rail (HSR), which are both under review by the current Pakatan Harapan government, would be revived and continued.