A Goods and Services Tax Bill has been tabled in Parliament today.

The GST is a tax on your consumption/expenditure – though it may be mitigated by tax credits and a range of exemptions on essential items.

Proponents say it will broaden the tax base and ensure that the rich too will pay taxes – especially on luxury items – instead of escaping due to loop-holes in the tax system.

Critics argue that it is a regressive tax that will widen income disparities and result in the poor paying taxes for the first time (whereas under the present income tax system, they are exempted). Unlike in the developed nations, the majority of Malaysians do not pay income tax because of their low income; thus, they cannot receive a tax credit to reimburse them for the GST they would incur on a basic level of expenditure. Critics say it would make more sense for the government to raise money by cracking down on corruption and plugging “leakages”.

Here’s your chance to make your voice heard. If they don’t listen to you, you know what to do at the next general election.

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  1. It is more important and crucial for the government to crack down very hard on corruption at all levels in the government sector instead of asking its citizens to pay more taxes

  2. Wira, in Singapore GST is charged into invoices for final payment.

    I do procurement in my work, so I saw these figures inside them.

    I personally have seen GST increases here from 3% in early 90s to 7% in 2006.
    Each percentage increase really taxes the poor here. Every bill is charged GST and will accumulate over years.

    Even though Govt give GST credits ( a mere pittance ) for citizens, it still not enuff to cover living costs. They only need to increase 1% or more to get them back.

    Hence I am totally against it.

  3. In order to collect and implement GST, the govt first must reduce personal income tax and remove all other double taxation that is being imposed presently like service and govt tax.

    Only when those are removed then the govt can start to talk about having GST to replace those. Looks like the RAKYAT is taken for a ride on their ponzi scheme and made to pay more instead of less.

    all adds up, the rakyat will be the losers and they will be laughing all the way to their banks

    • Singapore income tax is much lower then Malaysia

      First chargeable 20k is 3.5%, above 320k is 20%, GST rate is 7% they increase gradually from 1994 with starting rate at 3%.

      Malaysia first chargeable 2.5k is 1% the highest is 250k with 26%, the proposed GST is 4%.


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