Gst and Properties Industry

p1.0-Introduction about GST.

Nowadays, many countries around the world have already implemented the GST system within their economy system, while other countries are planning to.

Whether it is good or bad, GST system has had many impacts on all the industrial categories that controlled by it. One of these categories is what we are going to discuss—the construction industry.

Before we talk about GST and its impact on the construction industry, we have to know what is it? Why do countries need it? What is the history beyond it? What its benefits are?

1.1-What GST means?

GST means Goods and Services Tax. It is the tax that adds to the real price for the goods or services that consume by the costumers. In some countries they call it VAT. Usually it is 10% of the goods price, but it is different from country to another. In Malaysia, it is only 6% of the goods price.

1.2-The history beyond GST:

In fact, France was the first country that came up with the idea of GST system. In the year of 1950 the concept of GST was invented by the France tax office. They believed this system will be the best taxation system in the world.

Since that time, more than 160 countries around the world followed the same system within their countries.

The picture below shows the countries who had implemented the GST/VAT around the world.

1.3-Why do countries implement GST?

Many people believe that GST is better for the country because it means that only the consumer will pay the tax for the goods that he buys. Also, implementing of GST means cancel of the other kind of taxes, which they are usually Sales tax, and Service tax. On the other hand, governments believe that GST is the better way to increase the GDP of the country and keep the people satisfied at the same time.

1.4-Benefits of GST:

The official website of Malaysian GST claims that the new GST system will come up with these benefits:

1- Improving the standard of living.

2- Decrease the cost of...