Pakatan Rakyat has put forth some bad rationale in arguing against the implementation of GST in Malaysia. Populist argument tend to have bad rationale anyway. But the award for the worst rationale yet, for either pro-GST or anti-GST, has to go to our Minister, Ahmad Husni Hanadzlah of Barisan Nasional:
The implementation of the goods and services tax (GST)is a means of placing the country’s economy at a level that is at par with those of developed nations and in keeping with changing times, said Second Finance Minister, Datuk Seri Ahmad Husni Hanadzlah.
He said the GST implementation gave the government an advantage,particularly in enhancing income flow, which can then be used to implement projects for the benefit of the people.
”Only three countries in the South-East Asian region do not practice this taxation system, that is Malaysia, Brunei and Myanmar. Brunei does not have a taxation system and we will join 143 other countries in implementing the GST.
”We need to change to ensure we stay in the best grouping,” he told reporters after a gathering at the Tambun parliamentary constituency mobile service centre here today. [Husni: GST will put us among developed nations. Bernama via The Malaysian Insider. December 19 2009]
We implement GST “to ensure we stay in the best grouping”, eh?
Unfortunately, these countries are in “the best grouping” because of factors such as presence of strong institutions, respect for rule of law, free market economy, etc. It is not because of GST that they are part of “the best grouping”. These countries may be the same countries that implement GST, but GST is not the reason why these countries are part of “the best grouping”.
Correlation is not causation, my dear Minister. It is not.
