Recently, there was a column complaining about taxes on the middle class, claiming the middle class is being overtaxed.[1] The origin of the complaint is easily understood because a slew of measures have announced by the government and those new taxes include departure levy and the imposition of sales and service tax on some digital […]

The government is getting a lot of flak for its decision to adopt the dirty float mechanism in determining petrol and diesel prices. Pakatan Rakyat, Rafizi Ramli especially, is attacking the government by highlighting the fact that the government is not passing the full saving from the falling crude oil prices to the consumers and pointing out that […]

Among all the local newspapers in Malaysia, I reserve my utmost respect for The Edge. Unlike other papers, it has critical analyses and is less susceptible to explicit political bias. The Star and the New Straits Times (the NST especially) are political hacks. Others like the The Sun which can be objective more than once are […]

Several new points were raised with regards to my post on duties and cars yesterday. One was pollution, two was government revenue and three, in one way or another, income effect. It is not exactly income effect but close enough. Concern number one is easy. But let us state the pollution concern. The concern is […]

I advocate the abolition, or at least a significant reduction of import duties (and other excessive taxes) on cars as well as the abolition of the approved permits system that blow up the prices of foreign-manufactured cars to an outrageous level. This should come at no surprise because I am a libertarian. I do generally support freer […]

The Prime Minister finally launched a private pension fund. I am supportive of the idea of private and voluntary pension fund, but I am not going to discuss that here. What I find interesting rather is that contributors to the private fund are entitled to RM3,000 tax relief in a year. This raises one question: […]

Holding all else constant, I do not like tax. I do not think, too many people actually like paying tax. I only rationalize the need for paying tax by holding on to classical rationale for the need of the state: that there is externality. The state is there to protect individual liberty which, generally, cannot […]

Opponents of the introduction of goods and services tax (GST) in Malaysia have raised a number of points. Some of the points are valid even if they are disagreeable. Sometimes, the disagreement is ideological and difference is due to premises originating from separate irreconcilable positions. Those points are fine because at least they are logical […]

The Malaysian government plans to introduce goods and services tax replacing the current sales tax as well as service tax in 2011. I generally prefer consumption tax to income tax because one, it somewhat accounts for externality related to consumption (making it a close cousin to my favorite tax, carbon tax) and two, it is […]

Since the latest fad in Malaysia is the goods and services tax, I thought I should share my limited knowledge on the matter. I am not an tax expert but I know my microeconomics and welfare analysis sufficiently enough to have an informed opinion on the matter. Those that have done basic microeconomics will appreciate […]

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