“Shouldn’t Rafizi be happy that despite the government cutting the corporate tax rates from 27% to 24% since 2007, good economic growth i Malaysia had led to much increased profits and hence higher corporate tax collections?”
Dato’ Eric See-To
1. I acknowledge YB Rafizi Ramli’s request to debate with me on tax collection matters.
2. However, many have the opinion that this challenge is an attempt by Rafizi to divert attention from his internal fights within his own party and with external parties such as Dato’ Ambiga Sreenevasan whom Rafizi has strangely called as anti-Pakatan Harapan.
3. I must admit that the circus and antics of his current fights and the internal turmoil of Pakatan Harapan has made for interesting viewing.
4. The latest today seems to be Rafizi exposing the private conversation between both of them that Ambiga was a figure who had given certain documents that contributed to the failed Kajang Move that toppled their own Selangor Menteri Besar.
5. In order not to disrupt Rafizi’s fights and to avoid diverting attention from his troubles, Rafizi should only ask me for a debate again in a month’s time. There is no pressing urgency for a debate on this issue, anyway.
Perhaps in a month’s time, Rafizi’s internal fights could be over or he could have left or sacked from his party.
6. Additionally, I do not understand what Rafizi’s real unhappiness with the tax collections in recent years.
7. Initially Rafizi alleged that tax collections have outpaced GDP growth which he alleges has burdened the people. He then called for the government to reduce income tax and corporate tax since GST had been implemented.
8. After I had pointed out that both corporate and personal income tax rates have come down significantly since 2008, Rafizi then admitted yesterday that the rates have indeed come down and acknowledged that people are paying less tax and many individuals have now also been exempted from paying income tax.
9. However, he is now making an issue that personal income tax collection has declined by almost half from RM51,3 billion in 2012 to RM27.6 billion in 2016.
10. This is indeed strange as Rafizi’s initial complaint was that income tax collections by the government has outpaced GDP growth but now he is complaining that personal income tax collections have fallen almost by half.
11. Isn’t collecting less personal income tax from the people due to the government reducing income tax rates as well as giving many exemptions and deductions a good thing for the people?
Why is Rafizi now unhappy that the government is collecting less income tax from the people – which had always been the government’s own plan to reduce income tax collection as part of the GST tax reforms along with abolishing sales tax and service tax?
12. Rafizi then complained yesterday that corporate tax collections have more than doubled. Perhaps Rafizi should understand that corporate tax is payable on the profits of the companies.
13. Shouldn’t Rafizi be happy that despite the government cutting the corporate tax rates from 27% to 24% since 2007, good economic growth i Malaysia had led to much increased profits and hence higher corporate tax collections?
14. Or would Rafizi be happier if the companies are losing money instead and paying lower or no corporate tax?
15. Perhaps Rafizi should take a deep breath, step back and think carefully what his real unhappiness is and what he is trying to allege before challenging anyone for a debate.