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Sakmongkol ak 47

ariff.sabri@gmail.com

Saturday 18 October 2014

The People eCONomy- where has the RM13.8 billion gone to?



With some ammendments.

Where is the RM13.8 billion previously collected by SST gone to? It hasn’t gone anywhere. It’s in the system. The government officers better buck up. What was previously collected under SST is now collected under GST. We haven't lost anything that was collected under SST previously. 
The point here is this: the government thinks by doing this kind of maths, people will think the GST as being less severe- look here people, after we implement GST, we only make a nett gain of RM600 over million. That's a pittance. So don't fault GST. Its not a money making machine for the government. 
That is precisely my point. Its a better money making machine. That is the reason we will implement GST next May. Because its a more effective tax collecting mechanism. 
The RM13.8billion is not an spending item- it’s a revenue item. We don’t now take money to pay the RM13.8 billion out. We collect it under GST.  Think revenue, think GST. 


Who does the reasoning behind the maths for FM Najib? 


This isn’t a case of denigrating the hard working government officers who toiled day and night for several weeks so that the FM can have his so many minutes of fame.  This is case of misleading argument.

A few days ago, questions were raised about basic maths. Some points were raised about the mathematics of GST. The estimated proceeds from GST is RM23.2 billion. This is easily understood. But the government says, we have to deduct RM3.8 billion because, some goods taxable under GST are exempted. That too can be understood. The net value of the proceeds under GST will be RM19.4 billion.


From now, the argument gets murkier. The amount that was to be collected under SST would have been RM13.8 billion. We lost this amount say the government planners and says the clueless FM.

No, we don’t lose any money. We do not take RM13.8 billion from our revenue and pay it to somewhere else. The money is there.

The government says we have to deduct this- minus 13.8 billion; we are left with RM5.6 billion.  Then we used the GST proceeds to pay off BR1M totaling RM4.9 billion.  So we have the net gain from GST of RM690 million.

The government must take us for fools. Whoever did the reasoning behind the maths should be sacked immediately confirming my personal view that those who entered government service are intellectual gnomes. We don’t lose the 13.8 billion anywhere. It’s still there.

Let us warn the government, don’t steal this RM13.8 billion.

Hello- the tax revenue not collected by SST is now collected by GST. We don’t lose anything. We still collect that RM13.8 billion not collected by SST but now collected by GST. We still have RM13.8 billion.

We still have the RM19.4 billion after deducting the GST-free items. From here we pay the BR1M of almost RM5 billion, we have RM14 over billion.

So again is not a case of denigrating civil servants when we point out this fallacy. The RM13.8 billion is still in the system. The government is not taking RM13.8 billion and paying out somewhere.

9 comments:

James Labu,  18 October 2014 at 14:19  

Dato' Yg Dihormati,

Dlm khutbah jumaat semalam, Jakim kata pemimpin negara (Najib kot) mentadbir ekonomi negara dengan baik mengikut cara Nabi Yusof.

Sefaham saya Nabi Yusof tidak ada budget deficit dan hutang negara yg meningkat. Nabi Yusof berjaya 'to increase 7 years of continuous productivity and face 7 years of economic downfall and turmoil' tanpa menjejaskan rakyat.

Nabi Yusof tidak mengenakan cukai mcm GST. Tengku Razaleigh kata kerana kerajaan salah urus tadbir dan penyewelengan, rakyat yg jadi mangsa.

Persamaan yg saya nampak dgn cerita Nabi Yusof ialah 7 ekor sapi/lembu gemok dan 7 ekor sapi/lembu kurus. 7 ekor sapi/lembu gemok ialah pemimpin dan kroni. 7 ekor sapi/lembu kurus ialah rakyat marhaen.

Minta ostad2 di Jakim jgn jd penjual agama jd pengampu kerajan 'for a few pieces of silver'.

Anonymous,  18 October 2014 at 16:30  

Dato,

Whoever did that ‘minus 13.8 billion; we are left with RM5.6 billion. Then we used the GST proceeds to pay off BR1M totaling RM4.9 billion. So we have the net GST of RM690 million.’ speech could fall into two categories.

1)a failed maths blur-sotong economic professional wannabe

2)an evil bean counter

Case1 is straight forward incompetency & hopefully it’s the actual incident

Case2 shows a more worrying sign that accounting manipulative works r been deployed to cheat the rakyat.

This can be easily illustrated by this commercial from a radio station.

U borrow RM50 each from yr father & mother. That’s Rm100 u owed.

Then u buy a shirt for RM97 for yrself & get a change of RM3.

U then return RM1 each to both yr parent & keep the remaining RM1 as pocket change.

Now u owe both yr parent RM49 each & that’s RM98.

Plus the RM1 in yr pocket, that’s a total of RM99!

So, where’s the missing RM1????

To a trained accountant/professional, this is just a pure wrong entry of expenses at the debit/credit columns. Even though the maths looks good. It violates accounting principle!

But to a lay man, the multiple entries of transactions + the seemingly logical arithmetic confuse them. Once the confusion set in, the trick has done its part.

Let’s hope that najib is not employing such people to do his money disappearing act! Or else, there will be too many bones (1MDB????) already in the closet, waiting to be discovered.

By then, it could be already too late!!!!

Anonymous,  18 October 2014 at 18:19  

Dato, the people has a right to demand the govt to account for the 'missing' 13.8 billion ringgit. It cannot by just a simple say so to change this to 690 million ringgit. Please raise this up in Parliament. Even before GST is implemented, we have the mother of all mysteries.

Anonymous,  18 October 2014 at 20:05  

Anon 16.30
AT the risk of sounding stupid, can please explain the missing RM1.
I have a logical mind, if I owe each of my parents RM50 and I return RM1 each, thus I owe them RM49 x 2 = RM98. With the RM1 I retain,=RM99.
I know I came across a similar puzzle many years ago, and there is a logical explanation. Care to enlighten again. Apologies to Dato Sak for using his space.
thanks.

Anonymous,  18 October 2014 at 21:49  

Anon 20:05 - trick je: Actually you owe yr parents RM98, you have RM1 in yr pocket and you have a shirt of RM97 (RM1+97=98). so owing 98=value of 98 - there's no 99 anyway, just a trick to confuse.

Anonymous,  18 October 2014 at 23:24  

Let me explain like this - u start with RM100 & end up with RM1 + a shirt (intrinsic value RM97).

While both yr parent, who starts with RM50 each, ends up with RM1 each.

However, the overall value within the system remains RM100, ie shirt (RM97) + 3xRM1 from the three of u.

The confusion here arises when u r been tricked to combine two different transactions ((yr shirt)+ yr RM1 with yr debt of RM98 owing to yr parent) into a single accounting entry.

Notice the missing consideration of the shirt as bracketted! This is NOT allowed in proper accounting principle.

This is where the similarity with that (mis)-ingenuity of subtracting 13.8B from the new GST revenue of 19.4B as if it was been taken out of the system.

Like Dato has mentioned - NO, that SST money is still remained within the tax system. It's ONLY been replaced by a bigger value of the new GST revenue. They r both incomes to the tax system, except one is been replaced by the other in the calculation of the tax revenue.

If we r talking about how much the GST collected in comparison with the old SST, then 5.6B is the ADDITIONAL money collected under the new GST vis-vis the old SST.

Anonymous,  19 October 2014 at 08:42  

Anon 21.49 and Anon 23.24,
thanks so much. Give my brains some figuring out to do, within this smaller puzzle.

No wonder Dato Sak insists the RM13.8 billion is still in the system. It's obvious we have to reject all kinds of mathematical tricks and demand for proper accounting of the money the govt takes from the people under GST.

Anonymous,  20 October 2014 at 08:05  

NAJIB INI KETURUNAN BUGIS. DNA NYA LANUN.

DATO SAK. MEMBUANG MASA DAN TENAGA MENULIS BERKAJANG2.NOTHING WILL HAPPEN UNTIL LEMBU2 BALIK KA KONDO RM 250 JUTA SHARIZAT.
MELAYU SUDAH BODOH , LEBEH BODOH DARI LEMBU.LEMBU MAKAN RUMPUT MELAYU MAKAN BRIM.

50,000 PEGAWAI2 AGAMA YANG KENYANG- TEMASUK MUFTI, JAKIM, MAIS,JAIS, KAIS, PAIS,YADIM, MADIM,DAN BERBAGI2 LAGI GOLONGAN MAZHAB RASUAH WAL JAMAAH KERJA NYA MENGAMPU PEMIMPIN PERASUAH SAPERTI WAHAHBI YANG MENGAMPU KERAJAAN KELUARGA SAUD.

AMALAN TERBARU PUAK2 PEMIMPIN MAZHAB PERASUAH WL JEMAAH INI IALAH MELEKAKAN LEMBU2 INI BERSELAWAT DIPADAN2, STADIUM, DATARAN2. SEDANG RIBUAN LEMBU LEKA BERSELAWAT MERAKA AKAN MELANUN DAN MEROPAK TANPA GANGUAN.

HANYA PEMISAH KIEV DAPAT MENYELESAIKAN MASAALAH YANG DATO TELAH LAMA MENULIS YANG NAMAPKNYA TIADA KESUDAHAN.

noor mohamad,  20 October 2014 at 16:43  

kadang2 Datok ni bagi soalan bodoh, semua pakat nak jawab. well done Datok.

ikut mana pun, saya sedih lah dgn kjaan sekarang. tak sabar nak lihat kjaan bertukar tangan.

middle income group dah OK sebab semua dah boleh fikir. high income dok fikir poket mereka saja. yg paling penting yg perlu jadi sasaran kita sekarang ialah kumpulan low income.

mereka tinggal di kg dan di flet. nak pengaruh mereka ni amat susah. tak jolok salah jolok pun salah. jolok BRIM sikit, semua pakat pangkah dacing.

kena fikir pendekatan yg lebih berkesan.

sementara itu, saya baca tabloid keluaran kjaan selangor terkini, tak ada wawasan langsung. asyik foto MB masuk periksa longkang...apahal!

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