From the last post made, I wrote about the importance of personal income tax. Now in this article I will outline the challenges of implementing it. The need for Brunei to fend off financial parasites if it ever hope to stay away from the tax policy will be continued onto Part 3.
Implementing change in a society is hard; particularly in imposing tax in a nation such as Brunei’s. It requires a change in the public mind-set, transparency of financial management and effective financial leadership. Having said that it will be a long battle that could last up to decades. But it is avoidable.
Some people would even be ready to revolt, cuss and assault against those who bring about the subject of implementing personal income tax. It goes about a certain psychology which goes like this: A person whose stripped of his long time rewards will not go down without a fight. After all they have given free healthcare, food and commodity subsidies etc. Why would someone want to tax them of all their income now?
Thus if a government hopes to enact this as law then communication is key. Questions that should be answered should resolve around the underlying motive of personal income tax. Slowly thus changing the public’s mindset towards the subject. Wave after wave of public forums should be made. Media channel outlets should be engineered towards the benefits of personal tax income.Why would the government be afraid if they have good intentions for the people?
With the advent of personal income tax, the government then would then be forced to be more transparent on their expenditure. It is afterall the people’s money. No one wants to have their money spent into the drain. Equally, does Brunei have enough financial transparency now?
Leaders with financial sense should be in charge of the tax matter. Main responsibility would be the generation of wealth. Acquisitions of global assets should be top priority. Financial portfolios should model itself along the lines of the Harvard or Stanford portfolio model; with transparency and accountability as its department’s main values.
Persons in the tax department would be accountable of what they do, and should be courageous to plunge into uncharted challenges. Such as making Brunei Investment Agency a great example of a Islamic financial institution across the region. We need that.
How would we generate these types of people? By integrating Finance 101 to all major educational schools across the nation. “Richest Man In Babylon” should be made as a textbook to educate the youths about the values of money, and the importance of savings and investing.
It is better for MOE to invest in £100,000 for this Finance 101 as a pilot project by 2015. A 30 minute class per month for 5 schools for one year would be enough to kick start the program. If we have time for sports education we would have time for finance 101.
If we have the money to build the multi-million dollar kiosk-that ate up valuable land space-in Gadong than we have money to invest in the youths. The rewards to make capitalistic youths are invaluable to the creation of a great economy.(Perhaps personal income taxes wouldn’t even be in the question anymore)
If Brunei Darussalam would however choose not to implement personal income tax then it is better to look at the current situation facing the global economy today. Literally there are trillions of dollars of wealth get sucked in from these global economic nations to the bloody sucking financial parasites. Financial parasites who would impose high levels of usury to bring down a country, enslaving them through a subtle tactic called debt. Which I will digress onto part 3.