Sunday, 1 September 2013

A GLIMPSE ON GST



As a normal Malaysian and not coming from financial or economic background , when I first heard of GST to be imposed in Malaysia owh…..not another tax……Good and Services Tax . Many talks and discussion from everywhere in reality, net and over the press. Some positive and some negative thought…..I started reading articles on GST. I have to understand first before making any stand…..GST haven’t been table out to parliament and yet too many has started barking everywhere. The most interesting part is, some Malaysian as usual simply adopt a good rhyme instead of fact. Why I am not surprised………

GST proposed to be imposed at 4%. This GST is to replace existing SST (Sales and Service Tax) which was already implemented since 1972 at the rate of 5% and 10% each. Lay-man term at this point is simple ……. 4% < than 5% + 10% and everybody knows this……Let’s go further……
GST has been use in 143 country worldwide and the nearest is Singapore at the rate of 7%. In any country which practising GST, there is an exclusion for certain consumables item such agricultural and foodstuff. GST implementation in Malaysia will help to reduce business yearly operational cost up to RM 4 Billion and RM1.4 Billion over the export. Company with income less than RM500, 000 per year will be exempted from paying GST. This to me is win win situation. Consumer paying less. Business will also paying less. The only different is leakages on Tax collection will be eliminate under GST. This is definitely fair to everybody. All income and purchases should be tax and none should escape.

In ASEAN country only us, Brunei and Myanmar haven’t started using GST.  All other country in ASEAN community has started using and the fact given by them on the importances of GST compare to SST is:-
A). More comprehensive, effective, transparent and business friendly tax system.
b). Overcome inherent weakness on present system such as cascading tax, double and pyramiding  tax, tax erosion and leakages through transfer pricing and other means.
c). Increase tax compliance as it is easy to administer in view of itself policing method.
d). and many more………….

I believed , there is a discussion over the net previously regarding GST and income tax…….mmmmm this is interesting which I myself didn’t get it at first. After reading and studying thru examples from other ASEAN country which already is using GST …..I am now having a different view over this…. In Malaysia, there is a limit (lower limit to be precise) on min income that is not taxable. If I am not mistaken is income of less than RM3000 per month is exempted from paying Income Tax. This is what we practised now. This category of people actually still paying sales and service tax when they purchase something…..either they notice or they don’t ……at 15% of it. GST proposed to start in Malaysia replacing SST is only at 4% (not sure when will they increase)….No income tax + 4% is much better than No income tax + 15%.

People of Malaysia have to be smart. 1 step ahead from all this dirty politician agenda. We need opposition but definitely we do not need scoundrels that poison the mind of Malaysia. People ………always think positive. No matter you are on the opposition side nor the ruling side. Always think before act. It is not that hard to actually use our brain and some small effort to study and to understand on what we believe and what we opposed. This is a MILLENIUM way of moving forwards………….Don’t Keep On Barking At The Wrong Tree……It is totally absurd ….
Our government are preparing the draft for GST and will table it out in Parliament….Let them do their job. Wait till they table it out then we can judge which is better and which will burden the people. As usual I said , not necessary opposition just have to opposed on any single things …….this is an act of stupidity……the worst part…..there is still people who worship them…..What a world……!

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