Yay or Nay on the Gst

Yay Or Nay On The GST

When we first heard about the Government decision to impose a study to apply GST in the 2010 Budget by PM, not many were able to grasp the very concept of it then it goes undecided thus sparked conversation will it benefit the people or just an added burden and threats the poor communities in Malaysia.

The Government has taken a rather aggressive measures in consolidating its financial position. After all Najib did clearly expressed this in paragraph 6 in his 2010 budget speech,” We are now at a critical juncture, either trapped in the middle income group on advanced to a high income economy.”Former executive director of the Malaysian Institute of Economic Research Prof Datuk Mohamed Ariff Abdul Kareem, who has been one of the most vocal proponents for the implementation of GST in Malaysia, argues: “GST is needed not only to raise more revenue for the Government, but also to diversify its sources of income.” We could understand from this that our Government is on its way to strengthen its economic and stay competitive with other countries. In a way it may seem GST is the best step to boost revenue and in some countries it has proven to succeed.

What does GST means to consumers? Well basically, GST is a consumption tax on imported goods, and on supplies of goods and services in Malaysia other than those exempted or zero-rated. It is mainly borne by the end-user/consumer, and therefore, is not intended to add cost to businesses.

What does it covers ? GST covers all types of goods & services sold to Malaysian & non-Malaysian residents (therefore consumers) except for a common commodities such as rice, flour & sugar.As an example; Whenever you walk into your favorite hypermarket with the family to get some groceries in the future, you will be charged additional ~% (the proposed additional 4%) on top of your bill except for certain controlled items.

Further, Malaysia’s main revenue shouldn’t just live off petroleum. In other...