Sunday, September 23, 2012


Today at this time, I decided to write an article/post/argument/opinion or whatever you want to call it. It's up to you to call whatever it should be called whether article or what at the end of my post. Well I've four years knowledge of taxation from my studies. During the course of my undergraduate studies, I am well trained and taught in taxation skills. I'm not perfect after all because we human will never finish in learning things. I've decided to write this because I have my own stand of my understanding specially in my field. Often people out there say "things you learned from college/university are different from reality" well this statement not fully denied as there are principles behind in all situations. Whether or not putting it into practice is up to the responsible authorities to be accountable.

In life 2 things we definitely cannot escape. First is death. Second is taxes. Today's topic I'm not gonna talk about life or death but the second point taxation. Taxation is attributes of DIRECT and INDIRECT taxes. Both taxes are the source of revenue for the local government, state government and federal government. Quit rent and assessment will be put aside as these are not what I want to emphasize today. Now, direct taxes that we often see is income tax which is taxed by the Inland Revenue Board from the income of each individual derived. Whether it is from your salary, sales of property/land (RPGT), rights and patents, company profits, as long as an individual derived a certain amount of income, he/she/it will be taxed by the IRB according to its rate and public ruling. In short, we are being taxed from our income that we derived.

On the other hand, indirect taxes such as excise duties, stamp duties, custom duties, service taxes so on and so forth that are governed by the Royal Custom Malaysia. In layman term, duty of royal custom is to enforce law of goods that are being shipped in/out in the country and charge them duties according to its rates. Well it's true and their duty also is to ensure there is no goods being smuggler in without any permits. However, Royal Custom is an appointed agency to collect duties and taxes from goods and services that are acquired, obtained, purchased, used by the public/rakyat. In short, we are being taxed from what we spent whether a need or want.

Both Inland Revenue and Royal Custom has the same function which is collecting taxes from rakyat. The difference is only income and expenses. All in all, we as public/rakyat are being taxed from the income we derived and goods and services that we spent/enjoy. However, income taxpayers often say or maybe showing off that they are paying tax not you "YOUNGSTERS" or those who are not working. I would like to beg to differ and would like to testify and tell the WORLD that we or those who are not working are still taxpayers. Whether or not your are employee or consumer, you are being taxed! Therefore, do not proclaim that the only employed are being taxed.

Often public/rakyat ask, where the money that were taxed from us go to? Different people have different saying to the answer. Ultimately, those money being taxed will go to the budget and those money will be spent on the facilities for the public use, feeding the govt services provided, so on and so on. Which is TRUE! Inland Revenue and Royal Custom are the acting agents to the Ministry of Finance to collect those money for country's budget. On how they going to spend it, it's their wisdom on how to give back to the public. Again, I am not going to emphasize on how they going give back to the public. However, I want to emphasize that WE public/rakyat cannot escape from tax! and all of us are TAXPAYERS.

Sometimes, there will be incentives given to the public such as the recent program bantuan rakyat 1M where RM500 be given to all rakyat who needs it, graduate career accelerated program with an allowance of RM800 will be given to the participants and many more. Be my guest to take it and spend for your needs. Feel obliged to take it as those money are your money and you deserve to take it back. Many have the political mindset says you will be the opportunist and you are being marked and so on. Whether or not to vote for any party to be the government has nothing got to do with these. Take the money and go as this is a budget plan. If there are any extra, you will never know where the money will go to at the end of the day. To those who said not to take it and so on, here I am to tell you that you are giving a leeway for frauds, corruption, and so on. I am not pin pointing anyone or any party or whoever, but in terms of controls we must take charge and be responsible to ensure no hanky panky behind us. If you complain here and there without any action, then I advice you not to waste your saliva and talk so much because with your complaints without action and just for saying, it will never help any better to you or to the country or even to the rakyat.

Above all, I would wish to see all public/rakyat to wake up and open their eyes and be alert in all things are happening around us today. Whether politics, finance, racial, religious, we should be unite together and hope for a better future for our next generations. Do not lose hope and discouraged, we still have hope!