Tax system to create social justice in country - Khairy

The country's redistribution of wealth and income, including the tax system practised by the government today is to establish social justice in the country, said UMNO Youth chief Khairy Jamaluddin.

He said proceeds from government taxation such as corporate tax, income tax and goods and services tax were reallocated to those eligible through various methods including the 1Malaysia People's Aid (BR1M) and other subsidies.

"The notion that we (the government) spend tax money in an unfair and inequitable manner needs to be corrected because our concept of whether its welfare for the poor, persons with disabilities, the elderly...everything comes from the redistribution of income available to the country," he said.

He was speaking at the UMNO Youth Premier Breaking-of-Fast ceremony with over 400 people comprising the needy, religious students and orphans from around the capital, here, Thursday.

Khairy said the government was also focused on having an economy which could grow the nation's income through the involvement of companies that could contribute to the country's tax revenue, and subsequently be redistributed.

"If we are unable to secure investment and trade with the world and companies, and so on, then the government's revenue which can be redistributed to the public and those in need, will be less.

"This is all closely linked to the principle of social justice in Islam, and when we understand that the rule of 'Zakat' is not merely a form of tax, but the reshuffling of the economy, where the poor can help and the rich can contribute to national development," he said.

Therefore, he said to achieve the country's National Transformation 50 (TN50) plan, it was important for social justice to be the central plank in the community, especially by closing the gap between the rich and poor in this sophisticated and modern era.

-- BERNAMA