f the federal government insists on imposing a hike on foreign labour levy, it should scrap the goods and services tax (GST) to avoid further burdening the people, DAP said. Its secretary-general Lim Guan Eng said the proposal to impose the levy hike was untimely in light of the slowing economy. He also asked if Putrajaya was fooling around with the issue, now that the levy hike had been put on hold.
“Mengapa but keputusan madam main-main? Umum, lepas its nak kaji semula. (Why play around when making a decision? Announcing (the levy hike) and then say it is being reviewed.) “Is this a tactic to get the people to accept the levy hike? Maybe the hike will be reduced but there will still be a hike,” he told a press conference in his state constituency of Air Putih in Penang today. Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, who is also home minister, recently said the levy hike would earn Putrajaya RM2.5 billion. There are some 2.1 million registered foreign workers in Malaysia. Employers now have to pay RM2,500 per foreign worker in the manufacturing, construction and services sectors, and RM1,500 per worker in the plantation and agriculture sectors. However, Zahid said yesterday the hike, which was to have taken effect on February 1, had been deferred following an outcry from the affected sectors, and pledged to consult employers before making a final decision after Chinese New Year. Earlier today, The Malaysian Insider quoted Deputy Home Minister Datuk Nur Jazlan Mohamed as saying the levy hike was long overdue and was implemented as a way to encourage employers to restructure their businesses. Lim, who is also Penang chief minister, said there would not be objections against the levy hike if it had come at the right time. He said hikes should be introduced under the right circumstances, and should be right for the current situation. “They say the reason is to reduce dependence on foreign labour but now is not the right time. The hike will impact the construction and farming industries. “The government should wait until the economy has recovered a bit. But if they must have this levy hike, then we hope they scrap GST. “They implemented GST without any reviews. Scrap GST first so it will not burden the people further,” he said. The 6% consumption tax, implemented in April last year, has been criticised by the opposition for contributing to the country’s rising living cost. Putrajaya, however, has repeatedly defended the tax, saying it had saved Malaysia which was being hit by falling global oil prices. On a separate matter, Lim also urged the people to be cautious of the dengue outbreak. He said in Penang, there had been six deaths due to dengue just last month, a sharp increase from only two deaths in January last year. “This is serious and we advise the people to be careful. If you are sick, go straight to the doctor. “Please make sure your homes and premises are clean and free of stagnant water,” he said. (LOOI SUE-CHERN)
Link: http://www.themalaysianinsider.com/malaysia/article/scrap-gst-if-imposing-levy-hike-on-foreign-workers-says-dap
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