Selangor Journal

Reduce tax, more pocket money, encourage economic growth

SHAH ALAM, APR 13: The Nation is expected to continue to struggle in a sluggish economy due to Prime Minister, Datuk Seri Najib Razak’s procyclical economic policy, causing the country’s economy to stagnate.
Former Bank Negara Malaysia (BNM) Deputy Director, Dr Rosli Yaakob said, on the contrary Najib should practice the anticyclical policy to bring the country’s economy out of the current slump.
“If tax goes down, the rakyat will have more pocket-money to spend, encouraging economic growth. Instead, in the current situation, you increase the tax causing slower economic growth.
“The government should have taken the anticyclical approach, reduce tax and encourage growth. But now it is the opposite, the government has taken the procyclical approach which will accelerate Malaysia into an economic decline,” said Rosli when contacted by SelangorKini.
He said that referring to the government’s recent increase of excise tax by 5% on multi-purpose vehicles (MPV) and sports-utility vehicles (SUV) while retaining the goods and service tax (GST).
He said, Federal Government’s move to increase excise duty by 5% on MPV and SUV will cause lower and middle-income families to suffer.
Federal Government should be more prudent in managing the country’s economy as it involves the people’s interests.

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