Friday, September 2, 2011

Levy Tax

"Good taxation system help to established capital market step by step grown up instead of create the bubble"

Those day, Government had imposed some levy tax to discourage uncertain demand. Like, palm oil price above RM3,000 metric ton should pay extra tax. Withholding tax on engagement of foreign professional services and levy tax on engage foreign worker in state. So, are that effective?

The demand and supply subject to cost. The demand on lower cost to produce the product for supporting the production. So, Government assume that supply of workers from oversea is necessary. This excuse denied local people work harder subsequently bring youngest simply join in the colleague for further study. But most of the students does not have such qualification and basic knowledge to pursue their study. Finally, create a group of people imagine they are qualify but actually without the skill to support the labor market. This group of youngest hate to carry the tough task and ignore the hardworking spirit. Sitting under the sun and think about the fast money.

So, levy tax does not helpful to develop our country with strong support. Levy tax should imposed on those with few houses and few luxury car. It shouldn't apply on one time off. It should collected in the annual basic. If someone hold more than 2 houses and one the house use to rent out. The levy tax should impose on 10% of the value of house. If whoever used low cost flat to generated the rental, that should be 150% on the rental. If someone holding 2 cars, the road tax should be double and not allow companies taken up the car expenses as deductable cost.

The above example of impose the new taxation actually highlighted Government should have more way to adopting the new system to improve our productivity. Instead of use taxation system to cover/help such companies to enjoy the monopoly business. Of course, every system should support by strong enforcement team with strong judgement laws. Otherwise, system will diverting as power and finally use it as weapon to destroy someone which government does not like it.

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