(Oct 21): AirAsia Group CEO Tan Sri Tony Fernandes said today that he supported taxes based on consumption, but added that the government must also be more transparent on how it spent the people's money.

He said companies were "better" than governments because the former were more accountable for every ringgit they spent.

"I think that tax should be based on profits. I think tax should be based on consumption as well. That's fair. You consume more, you pay more. You have profits, we all have to give a part to society.

"But I think more accountability on tax revenues, how money is spent, I think that's where companies are better than governments in ensuring a better PNL (profit and loss), ensuring how money is spent, whether there was a good return on investment.

"I think government needs to be more transparent on how they collect tax," Tony said when speaking at the Global Transformation Forum in Kuala Lumpur.

He said this when asked by the panel's moderator, United Nations Assistant Secretary-General Magdy Martinez-Soliman, what tax break he would request from the government if given the chance.

But Tony said he did not believe in tax breaks as it would further complicate the system.

"I think there's too much of a fiscal system that tries to take considerations of so many different demographics, so many different special needs and special industry needs, etcetera.

"It becomes complicated, leads to abuse and avoidance," he said.

He said a simple tax system would save the government money, as it would allow for easier collection and reduce the number of accountants needed.

Tony's support for consumption-based taxes comes on the heels of Pakatan Harapan's announcement that it will zero rate all goods and services tax (GST) if it comes to power.

The coalition said in its alternative budget that it would offset the loss of GST income by making RM30 billion in savings by stamping out "wastage and corruption" and shutting down several state-linked corporations. – The Malaysian Insider