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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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
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.
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%.
They need the GST. Why? Scandals after scandals. Petronas money has vapourised. Billions spent on projects which give no added $ value. So much money has been ‘wired out’ of the country through money changers. No action taken against those people. Bank Negara is going after the money changers instead. This is Malaysia Boleh. Billions are sent out of the country by those who have no trust in this country. Yet, they are the people who go round to tell the people, ‘untuk bangsa, negara dan agama.’ The country is ruined. Yet, there are people who go round conning the… Read more »
I see positive direction from PM Najib. See how Nazri stance on BTN against many others. Without PM Najib approval, he will not do so.
UMNO has failed the nation. It’s time for change.
That is why PM Najib comes to rescue.
Gerakan K again! You cannot see the forests for the woods, can you really see the positive stand of Najib? Where can you feel the stand is positive? You should know better. Najib, for that matter cannot perform, not because he does not want to, simply because he is too weak to act, because of his excessive baggages! He should not have taken the PMs portfolio in the first place! He just cannot do what he wants to, get it, dunggu of the first degree? Najib had ascended the PM position 9 months earlier, just what has he done for… Read more »
Gerakan K,
Syoiok sendiri ke? Masuk lif naik sendiri lah.
Gerakan K,
Constitutional law expert, Abd. Aziz Bari of IIUM, had spoken out without fear or favour that Malaysia is Zimbabwe, with regards to the rotten state of the law and democracy in Malaysia.
What is your comment? And you see good coming? Do you know Mugabe? I think you must be, judging from you know all attitude.
Do you personally attend open day regarding to NKRA? I was there and contributed a lot ideas to the initiative. Do you know what is NKRA? Hey don’t cheat and use google to search for it. Answer me what is NKRA. PM Najib shows his commitment via NKRA. What is PR commitment even they failed to agree to form a formal coalition? Do you know what is PAS President stand on formal coalition? Enough of PR dream and fancy when absolutely nothing in practical. At least with BN, I see thing improving albeit slowly.
Hello! My dear Gerakan K, Do not be so worked up la. We are exchanging views only, right? You must understand that Malaysia today has develop a penchant for abbreviations and sloganeerings, do you agree in the first place? What is 1Malaysia? Can you please clarify for the benefit of the rakyat? No Cover Ups? Gerakan K, be careful you know, whole jet engines also goes missing la, are you aware? Also, now they are talking of other wares too la. And, oh God, Altantuya Shariibuuuu’s spirit is still wandering you know, and that of Teoh Beng Hock who is… Read more »
Gerakan K,
Let us not get worked up over silly comments as our comments are viewed by all and sundry. Besides, we are abusing Anil’s blog with our silly comments. Thank you Mr. Anil and sorry for using your blog for unproductive comments.
Once again Merry Christmas, Gerakan K, Cheers!!!!! Definitely we are neighbours!
Good that you are actively participating in the NKRA and that you are giving many ideas to the initiative, hopefully productive and sensible contributions.
I have read a variety of piece meal views and since I have the experience of many countries, I will give my view on GST. Firstly understand that GST is a tax collected from the consumer or buyer which means 1. The seller now has a legal right to collect taxes from buyers/consumers on behalf of the gormen 2. The onus is on the collector to honestly remit these collected taxes to the gormen 3. The GST will be levied on all invoices, cash bills etc. 4. With corporate houses, this will work well as they cannot manipulate the books… Read more »
Hi bro, u r so good….. and the simulated cost really out from my expectation, one more gimmickry from BN government…..
My pleasure Bro
come on la, everything chinese? 90% taxpayer chinese? bull…, when everything have ‘malay’ word, it is racist. When ‘malay’ speak, it is racist.
Then how come chinese always claimed everything, not racist? Come on la, racist is only in politics. Reality, in our normal life, my chinese neighbour is my brother.
I against GST because why normal citizen has to pay more; whereas the corruption still on going. IF they effectively control they budget and eliminate corrupt then the budget will be positive. It makes us look like idiot to pay the UMNO putras buta money every year.Second, it was too sad if they think GST will help the country, by additional income of 10Bil might increase the living cost and reduce the buying power in certain extend.
How to become a rich and civic minded country if along the way, all those who earn less refuse to pay tax to help develop the country? Those who earn more, pay more. Those who earn less, pay less.
Do your civic duty, fellow citizens.
Never say don’t want to pay tax.
GST system of rebates ensures that companies and businessmen will find it difficult to cheat.
It will plug many leaks.
Raymond do you know that personal and corporate income tax will come down when they impose the GST? It means the biggest taxpayers(chinese and companies) will be the ones who benefit. Unless of course you are a chinese who pays no tax or marginal tax then you suffer. But overall it’s the well to do chinese and companies who come out winners. This will be reflected badly on BN in the next elections.
It’s not just the ethnic Chinese companies. The corporates of whatever ethnic group stand to gain from lower taxes at the expense of the lower income group,who will now have to start paying these taxes.
Hi John
I think u have problem in logical thinking, how much gov can cut down income tax? not mistaken is 1%, but don’t forget the 4% is for almost every thing in our daily use and also the chain effects might causes the hawker food hike up etc. so come to the end every one have to pay additional expenditure regardless of rich and poor. So who is the beneficiary?
btw, do u have any problem with Chinese?
Hello Anil, GST, as we know it in New Zealand and Australia, does not discriminate against anybody. Everybody pays, no matter how well-off or how much a person struggles to survive each day. It might work well in a developed Western society like Australia where the average income is comparatively high and where we have a social safety net of income support for the poor and jobless. But in Malaysia, where 85 percent of the population don’t earn enough even to pay income tax, the GST will hit hard, very hard. So, instead of trying to pretend to be a… Read more »
You as a consumer ARE already paying taxes unknowingly.
Upon importation there is an automatic 10% sales duty payable. On top of that is the actual tax for the imported item based on its category. Eg. Plastic imported item is 30% tax + 10% sales duty.
If not mistaken, even if the item is “tax free” (eg. computers, cameras, pens), there is still the 10% sales duty.
So you are already paying some sort of tax.
To the one named John in his comment, yes the chinese pays for 90% of the country’s taxes,still want to tax more on us. Despite we contributed so much to the countryé coffers, we are still be treated as immigrants, 2nd class citizens, what do the goverment want from. Don’t simply put in your comments if do not understand the unerlining issues.
Yup agree, they really treat us like a ….
So i dun understand why still has so many stupid … support BN…
… Malaysia will exhausted soon, and they might blame the (minorities) again! That is their culture…..Like Cantonese quote ‘blame the ground as u can’t …!!!’
Is our GST going to be invoice-based or accounts-based?
The coffer must be really dry, otherwise the government will not impose such unwelcomed tax when BN already lost so massively in 12th GE.
BN- BARISAN NAIK
(GST NAIK,CORRUPTION NAIK,ORANG DIBAWAH JAGAAN KERAJAAN LBIH BANYAK MATI SEPERTI TEOH BENG HOCK , KUGAN DAN LAIN LAIN.) DAN LAST SEKALI BN (BEE END).
SEMUA MASUK NERAKA!!!!!!HA!HA!HA!
There is NO such thing as ZERO rated goods. The GST of supply chain of warehousing, transport, distribution, forwarding, drop off, fuel and others will ultimately flow to zero rated goods such as food and beverages. Only a brainless idiot would believe in zero rated goods. Also, has the gomen promised reduction in personal and corporate taxes? Will taxes be reduced by 4% across the board? And to all those who are not paying taxes and who voted for BN, Congratulations. You have just made yourself poorer and the tax consultants and BN richer. Studies have shown that the poor… Read more »
GST will benefit the rich and the poor one will suffer. If GST really implemented, then BN will lose next GE. But it also depends people confidence on PR. Otherwise it is business as usual for BN.
I have yet to come across someone who complained about the possible system leaks, eg. like the 5% Government tax which was collected by some retail outlets but when in fact, they were either unregistered or did not pay the government the amounts due. Just like gated housing estates or condominium with so-called security guards, everyone assumes the security aspect has been taken care of. To use an example in UK many years ago, someone opened a bank account with an assumed name HM Custom and he collected many cheques drawn in favour of HM Custom & Excise and paid… Read more »
The Government taxing how many times?
Some times we find one items being double taxed and many do not know them.
Anil, any data available showing the countries that has this GST and what is the amount.
I believe this GST only applicable to high income earning countries.
Gomen always says this and that implementation won’t burden the poor, but, I think the peoples have been taken for rides for more than 52 years now.
GST is operating in Indonesia, Philippines and Thailand. These are not developed countries like the UK, Singapore, NZ or Australia. Yes of course some things will cost more. But GST has such things as zero rating and exempt supplies of goods and services. What should be fought for is the extension of the zero rating. Not even exempt supplies. The leakage from the tax net with GST on will be so much less. And that is where most of the government’s revenues will come from. Just as much probably from the GST take itself. So, hopefully people will get real… Read more »
Its another ripoff by Najib and the corruptible UMNO BN government.
If a GST is implemented then would products like Computers still have a 0% GST? If taxes are going to be introduced to all these tax free items then it is not fair. However the GST is a good way of taxing those who earn big bucks and end up paying minimal or no income tax, especially the businessmen.
Whether or not the Government introduces GST, I am still voting for PR in the 13th GE
Some proponents of GST have touted the 4% rate as lower than the 10% Sales Tax which it will replace. But sales tax is levied at source on manufacturers and importers on nett prices. Let’s say there is a 10% markup from source to consumer the effect of 4% GST on the retail price is 1.1 x 1.04 = 14.4% of nett price. In reality, 10% from source to consumer is marginal. It’s more like 15%-25% so the real GST may range from 19.6% – 30%. Furthermore, GST will affect a far wider range of goods and services than sales… Read more »
BN = Barang Naik.