Thursday, February 11, 2010

Government Expert: GST Not Burdonsome

A Kadir Jasin

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WE had discussed the proposed goods and service tax (GST) before and the comments from debaters had generally not been positive.

Let us try again. This time we gave the benefit of the doubt to the government. Let us listen to what a government tax expert has to say.

The following report is from the National News Agency Bernama and it is published in full.

“KUALA LUMPUR, Feb 10 — The implementation of the Goods and Services Tax (GST) based on current estimates, will not lead to price increases due to the offset from the abolishment of the sales and services tax (SST), the Chairman of the Tax Review Panel in the Ministry of Finance, Datuk Kamariah Hussain, said today.

She said logically, with GST, consumers would pay 4.0 per cent tax compared with the current service tax of 5.0 per cent and sales tax of 10 per cent.

“GST is progressive rather than regressive, with tax incidence at the 4.0 per cent GST rate being lower than the current SST,” she said at the Affin Investment Bank forum on GST here today.

For instance, consumers currently pay about 2.8 per cent in tax in the prices of goods purchased but with GST, the tax element will be reduced to 2.5 per cent.

With GST, price should decrease as registrants will be able to claim on GST incurred on their inputs, she said.

“We really hope industries will pass on these savings to the consumers,” said Kamariah.

She said the Ministry of Domestic Trade, Cooperative and Consumerism is coming up with a regulation to address issues of businesses taking advantage and keeping the savings to themselves instead of passing on savings to consumers.

“We are really taking care of the lower income group and ensuring that this lower income group will not be affected by the GST,” she said.

However, the implementation of GST will not only benefit the lower income but is expected to be enjoyed by the whole “rakyat”, she said.

In terms of tax collection for the government with the GST, she said the government is expected to collect less revenue with the replacement of SST with GST.

The government currently collects a revenue of almost RM11 billion to RM12 billion from SST. However, under the GST system there will be an estimated shortfall of RM1 billion in revenue, she said.

In order to collect the same amount, the government would have to impose a 4.2 per cent GST rate, she said.

The less collection means more savings to consumers, she added.
More than 140 countries have implemented GST and Malaysia needs to introduce GST due to “inherent weaknesses” in the current consumption tax, said Kamariah.

The proposed GST model is a broad-based consumption tax in the form of value added tax and it covers all sectors of the economy as well as imposed on the supply of goods and services.

Earlier reports have said that the government aimed to fully implement the GST in mid 2011. — Bernama”

A few questions thought.

1. A shortfall of RM1 billion in revenue? A minister was quoted not too long ago that GST would raise revenue by RM1 billion. Who is right?

2. If the Ministry of Domestic Trade, Cooperative and Consumerism has not been able to control profiteering on a smaller number of goods and services under the current SST, what guarantee does the consumers have that it will be able to rein in the unscrupulous cheating traders of a larger number of goods and services?

3. Although the GST rate is lower than the SST, would the consumers not be paying more in the form of tax because more goods and services are covered by GST as opposed to SST?

Over to you fellow debaters.

41 comments:

antupengguna said...

Dato',

“We really hope industries will pass on these savings to the consumers,” said Kamariah.

Really hope?

Baik ada mekanisme untuk memastikan "passing of savings" ini. Bila ada mekanisme, kuatkuasakan sebaik-baiknya, jangan asyik beri amaran saja.

1. Berapa meriah sikap "passing of savings" di amalkan di sini? Atau lebih meriah lagi sikap "mengaut untung" sampai ke tahap tidak bermoral pun ada.

2. Penguatkuasaan sesuatu mekanisme untuk menjamin kebajikan pengguna ada di tahap yang memberangsang ke?

- Banyak produk yg beli hari ini, besok rosak. Harga memang jauh lebih murah dari produk asli yg berkualiti. Kenapa produk yg lekeh, langsung tidak berkualiti, tidak menepati piawai, masuk secara berleluasa ke negara ini?

- kenapa produk tipu ada di merata-rata tempat di sini?

- Tanya pembeli rumah yang terbengkalai. Perjanjian jual beli sign. Loyar digaji. Interest bank bayar. Mana rumahnya? Kenapa susah sangat nak tuntut kerugian sedang Perjanjian Perjanjian jual beli di laksanakan siap dgn loyar sekali? Pemaju dapat duit. Loyar dapat duit. Bank dapat duit. Pembeli dapat apa sampai nak tuntut kerugian seperti yg termaktub dlm perjanjian pun macam mimpi aja?

Balik-balik, kita sebagai pengguna juga yang tanggung!

Anonymous said...

DAKJ said, "Let us try again. This time we gave the benefit of the doubt to the government. Let us listen to what a government tax expert has to say."

Unlike me, you are just too kind.

Saya juga terfikir 3 perkara yang sama dan ditambah satu lagi.

Bagaimana dengan GST keatas barang yang bertukar tangan beberapa kali sebelum sampai ke tangan pengguna; pengeluar bahan mentah ke pengilang ke pengedar ke peruncit? Berapa kali tax tu dan akhirnya siapa yang tanggung? (Bukankah 4% darab 4 kali tu?)

Bagi jalan dulu model ekonomi baru, lepas tu boleh la cerita GST. Ini tidak, model ekonomi baru sampai la ni masih lagi tak ada bentuk. Sampai bila nak simpan konsep?

Baru minggu lepas PM beritahu kena lanjutkan tarikh pembentangan!

"This time we gave the benefit of the doubt to the government." I don't think so!

p/s sayang sekali si Kamariah yang pakar tu tak sebut, dalam GST apa akan jadi dengan kelompok barang kawalan.

Fed Up

DrAFauzi said...

I agree with your thoughts. GST covers more than SST ever did hence in the end it would cost the people more. Does she really believe that prices will actually go down? Where have she been all these years....?

dan kajang said...

Assalamualaikum Dato'

1. From the way it looks, they seem not doing their homework. Otherwise how come they come out with two different findings. RM 1 billion is not a small amount. If one party says the Goverment will gain or lose RM 1 billions on the implimentation of this GST, whilst the other says RM0.5 billion, then it is quite acceptable. But now they seem to come out with two different contrast findings. It is quite interesting to find out who is telling the truth or lies.

2. Let's hear what's the Ministry concern's comment.

el-Barokhas said...

“We really hope industries will pass on these savings to the consumers,” said Kamariah.

Our people (including industries and buisnesses) must be the most civil and sincere on this whole planet earth such that the government can run the country just by hope rather than by fiat.

Macam di syorga saja, nampaknya.

Who dare say Malaysia tak boleh?

Anonymous said...

Dear Scribe,

I believe the keyword in the headline is spelt "burdensome".

In Bahasa it is "membebankan or "menyusahkan"

Thank you.

ENGLANDCOME.

Anonymous said...

Salam,

Harga pengguna barang x = RM1 setelah di campur sales tax 5% + 10% = RM1.155 (andaikan faktor2 lain tidak berubah)

Bila di ubah kepada GST 4%, sepatutnya harga pengguna cuma RM1.04 => murah tuh!!!

TAPI.... berapa kerapkah harga diturunkan bila kos barangan itu di dapati turun? yang semestinya.... keuntungan menjadi semakin besar, kalau dulu cuma boleh beli helikopter..... sekarang boleh beli Jet Peribadi!! tak gitu?

Wak Kang

Shah said...

Dear DAKJ,
I have one comment only. Why is that the government is always thinking of getting revenue mainly from taxes.Even a big chunk of our hard-earned annual bonus goes to government coffers.Why cant those clever grey matters in government come up with better ways to get revenue without burdening the public?

francis ngu said...

GST around the world has generally been known to cause price escalation. Did the prices come down in Singapore ? Has the "expert" done international comparative studies on GST effect on prices, and if so on which countries which have introduced GST? Will such a comparative analysis, if any, be shared with the public to guide this debate?

In Australia, the 10% GST led to price rises of well over 10% due to the rounding effects. Prescribed timely GST reporting by companies may also add to business overhead which consumers will eventually have to bear.

Has the cumulative and compounding effects of intermediate goods and services in the production chain of final goods and services been accounted for by this "expert"?

The wide discrepancy of the 2 official sets of estimates on its impact on Fed. coffers does not give the public any confidence to this latest "expert assessment".

Anonymous said...

Two things. One, not all product and services have service tax so it is better to say that the poor were paying zero tax to four percent tax. Secondly, it is compounding 4 percent accross the chain. I doubt the government got it's math right. Amoker

yes said...

Assalamualaikum Datuk,

Tak dapat nak kata apa apa, cuma saya berdoa agar Allah akan mengurniakan kepada Malaysia sebuah kerajaan yang betul betul membela nasib rakyat dan ugama Islam.

Parti mana, siapa pemimpin nya saya tak dapat nak buat andaian, hanya ALLAH ya Aalim Yang Maha Mengetahui

yem said...

1. If the GST implemented in 2011 loss of 1 billion taken into consideration during budget proposal. Government spending will be cut by 1 billion( which ministry will be affected kementerian Pendidikan ka )

2. Consumer or rakyat would not be able to identified tax elements in price and government do not have mechanism to control product price and if tax reduction do not reach rakyat overall loss to rakyat is 2 billion (goverment spending and tax reduction)

Papa_lah_kita said...

US dollar naik harga barangan naik.
US dollar turun harga barangan TAK TURUN.

Harga minyak naik harga barangan naik. Harga minyak turun harga barangan TAK TURUN.

Harga komoditi naik harga barangan naik. Harga komodoti turun harga barangan TAK TURUN.

Cuaca buruk harga barangan naik. Cuaca baik harga barangan TAK TURUN.

GAJI TAK NAIK-NAIK. HAMPEH!

Setahu aku SST ni cuma dikenakan untuk barangan yang dianggap mewah. Jadi, sekarang bukan semua yang bayar SST.

Kalau GST(Gasak Sampai Tahi) dikenakan, semua jenis urusniaga dikenakan CUKAI 4%. hemmm..

Beli belacan pun kena cukai 4%.
Beli tempeh pun kena cukai 4%
Beli gula2 pun kena cukai 4%. Mak Aii serba serbi KENA CUKAI!!!!!.

Kalau gaji RM1000 dibelanjakn RM40 kena bagi KERA-jaan. Maknanya gaji sebenar RM960 :-( Dahlah Gaji x pernah naik dalam 15 tahun, KUASA BELI pulak KECUT!

Cuma di Malaysia GST dianggap penjimatan. MEMANG GELIGA!

Ab Razak Hj Ahmad said...

"Passing of savings to customer...???"... Jangan mimpi la.... Passing of burden ada la...

Sekarang tengah hangat diperdebatkan yang sekolah kena bayar sendiri bil utiliti i.e elektrik dan air. Ini arahan TPM @ TMY yang nak amalkan konsep passing the burden. Sekolah dok melilau cari dana... Dah lah budget penyelenggaraan kena potong, lepas tu nak kena bayar bil sendiri... Ada arahan berjimat cermat guna bil elektrik... Kipas dan aircond serta makmal komputer... Hebat sungguh idea TMY. Pada masa yang sama sekolah prestasi tinggi (SBT) dapat extra RM700k. Sedangkan satu Malaya dah tahu sekolah mcm MCKK, TKC dan STF memang terbaik dan cemerlang...

Dah ada nada sinis sekolah akan letak meja kutip 20 sen depan tandas nak cover bil air...

As a conclusion, there is no concept of passing of savings kat Malaysia ni.... yang ada cuma passing of burden je.....

affendi hussain said...

Salam semua..

(1) In Malaysia..consumer price speaking, WHAT GOES UP WILL NEVER COME DOWN..that is a fact.

(2) “We really hope industries will pass on these savings to the consumers,” said Kamariah.


- Really? How nice..I thought the only thing that they will pass on to the consumer is the INCREASE, NOTHING BUT THE INCREASE..SAVING?? that, they will keep for themselves as an extra profit..and FYI, HOPE doesn't work here and maybe only applicable in Never2Land! This is Bolehland..Better think 1st before talk..

(3) "The implementation of the Goods and Services Tax (GST) based on current estimates, will not lead to price increases due to the offset from the abolishment of the sales and services tax (SST)..

- so, what's your say about the introduction of a NEW TAX to REPLACE the SST as in the case of automotive sector - the EXCISE TAX?? I don't see anything coming down as a saving from there!

(4) The less collection means more savings to consumers, she added.

- What a hypothetical statement..from which facts, figures and experimentation model do you derived that conclusion?

However, the implementation of GST will not only benefit the lower income but is expected to be enjoyed by the whole “rakyat”, she said.

- Similar to this one..tell me pls.. which sane homosapiens out there that really enjoyed being taxed especially among the majority subsidy mentality Malaysian? The lower income group? Joker!

(5) Final question: Will you people increase the PCB (hike as you like?) without giving notice to taxpayer like us again whenever the Govt is short of a few billions after this GST regime being implemented?

Whatever the Govt is planning of doing, they should do it systematically..based on a proven & successful model..140 country right..? so pick the best as an example for implementation model..

and by doing that..please.. do it with no distortion or over manipulation (e.g. like in the case of automotive sector)..if you want to follow..please follow all the standard from A to Z..don't make it 'rojak' like wearing a coat & a necktie but sarung and capal at the bottom..

Otherwise, all will be a futile attempt..hogwash..& at the end defeating the purpose and WE the Rakyat will suffer the end result! Salam 1 Malaysia..
Cukai didahulukan..kerajaan diutamakan..rakyat dikeparatkan..

(".)

ab said...

Salam dato,

WHAT?????!!!... A TAX THAT IS NOT A BURDEN to the rakyat?????.

Ni macam kata nabi muhammad dilahirkan di bulan.


THE TRUTH is, the government is FORCING the tax into your and my throat!!...you tercekik, terse-dak,turns blue,black out or has cardia arrest is non of the government problem.....

See the tax MULTIPLYING THE PRICES bro...importer kena 4-5%,wholesaler 4-5%,distributor kenakan 4-5%,retailer kenakan 4-5% and so on, and so on...

IT CAN NEVER BE 4-5% one time only price increment in businesses in malaysia!!...NEVER.

Nanti bila dah TERHANTUK, U-turn balik tak jadi juga sebab dah terkena cukai 4-5 % from top to the last buyer of everything,
MANA ADA DETAXING method!......


Teringat terbaca tulisan yang kata....you can not tell lie to all people at all the time.

Saya tambah..you can not tel lie to all people EVEN ONE TIME nowdays...


Ada reverse-GST untuk penoreh getah,pekebun kepala sawit,penanam padi,penternak ayam,penternak ayam itek,penternak lembu,penanam sayur
dsb???..mesti gomen kata NO,NO,NO,NO... you pay me, not i pay you!!!!..


Abu Bakar Ab Rahman

langit biru said...

With GST, price should decrease as registrants will be able to claim on GST incurred on their inputs, she said.

“We really hope industries will pass on these savings to the consumers,” said Kamariah.

She said the Ministry of Domestic Trade, Cooperative and Consumerism is coming up with a regulation to address issues of businesses taking advantage and keeping the savings to themselves instead of passing on savings to consumers.

“We are really taking care of the lower income group and ensuring that this lower income group will not be affected by the GST,” she said.

However, the implementation of GST will not only benefit the lower income but is expected to be enjoyed by the whole “rakyat”, she said.

In terms of tax collection for the government with the GST, she said the government is expected to collect less revenue with the replacement of SST with GST.

The government currently collects a revenue of almost RM11 billion to RM12 billion from SST. However, under the GST system there will be an estimated shortfall of RM1 billion in revenue, she said.

KALAULAH betoi apa yang Kamariah cakap ni Dato', seolah-olah RAKYAT untung KERAJAAN rugi.

Sepanjang umur Dato' lah, ada tak syarikat yang "passing on savings to consumers"?.

"really hope" tanpa ada sebarang arahan wajib/ undang-undang kecil jangan harap boleh jalan. Setakat Dasar,Mekanisma,Regulations saja tak cukup. Orang bisness otak dia ligat Tok.

Soalan Dato"
1. A shortfall of RM1 billion in revenue? A minister was quoted not too long ago that GST would raise revenue by RM1 billion. Who is right?

Menteri lah Dato'!!! Menteri kita kan bijak-bijak!

( Kalau niat kerajaan untuk tingkatkan hasil negara dengan cara tingkatkan tax, maknanya keadaan ekonomi negara semakin tak baik. Ini yang berlaku dalam zaman Kerajaan Islam Abbasiah, cukai rakyat dinaikkan untuk tampung hasil negara!)

Azman said...

Y.Bhg Datuk AKJ,

Perhaps, it’s not too much of insolence if I say that lately a few of government’s plans seem to be of mice and men. Hype sahaja yang lebih, in the end, or immediately after the hype, almost nothing is realized.

Take a look at the announcement made on KPI, what has it become? From the initial intention to evaluate the performance of Ministers at every 6-month time, it has turned out to be national KRAs instead with extravagant hype on GTP, labs and whatnots. Now, the proposed performance evaluation on ministers is already a backburner thing while the GTP is yet to transform any KRAs as per the true concept of ‘transform’ would suggest.

Look also at the hype given to the New Economic Model which was claimed would be able to catapult the country into high income nation in 10 years time. What has happened to the initial launch date? They say they need more input. Whose input? The rakyat or another foreign “con”sultant? Why gave it too much of hype if masih meraba-raba in the first place?

Is this government serious about their ‘Performance Now’ slogan or is it a mere mantra?

About GST, I believe the government should have ample time to run several simulations before coming up with the expected revenue from this tax. It has been approx. 5 years now since the formation of tax review panel in 2005 particularly to look into this matter, but as you said Datuk, they still make a contradictory statement between an increase and/or decrease in revenue of RM1b. Macam mana ni?

To me, it only showed that they are still meraba-raba lagi, yet they want us to telan bulat-bulat all their words through their hype strategies? Mana buleh….

India and Sri Lanka had bad experiences about GST. Both countries had applied this tax system in late ‘50s and suspended it in ‘63 due to infeasibilities. Later in ’66, Indian parliament repealed the GST system back but not for Sri Lanka.

According to the list issued by the MoF’s tax review panel, there were nine countries selected and studied upon their GST legislations – i.e. New Zealand, the U.K, South Africa, Canada, S’pore, Australia, Thailand, Indonesia and Pakistan. Why didn’t the tax review panel include India and Sri Lanka to learn about the said infeasibilities? As much as we could learn success stories from those nine countries, we cannot avoid entrapment if we neglect failure stories.

Entahlah Datuk, the government may or may not listen to our grudges, but as far as I’m concerned, I’m enjoying this kind of a criticizing because it’s the only thing we could do anyway, at the comfort of our high back chair….

Thank you.

Azman Mohd Isa

donplaypuks® said...

Datuk

It is very clear that earlier the govt said they will collect an EXTRA RM1 billion from imposing GST!!

So, Datuk Kamariah is clearly contradicting the Govt. Anyway, her statement makes no sense. If there is going to be a shortfall of 1 billion as opposed to an excess of 1 billion, why introduce a loss making revenue proposition!!??

Also it's nonsensical to say prices won't go up with GST at 4% since Sales tax at 5% will be abolished.

GST is a much more broad-based tax system that will also increase admin work in most companies. They will have to keep more extensive records and make quarterly returns to C&E and will not abosorb that cost; it is 100% guaranteed they will pass on that cost to the consumer. More than that, inflation will also jump up permanently if GST is not implemented carefully.

Understanding the mechanics, effects and pitfalls of GST on national economy is not rocket science abstract maths. All Datuk Kamariah has to do is take a short study trip to S'pore and Australia to understand what historically transpired there when they first introduced GST there!!

dpp
We are all of 1 race, the Human Race

Anonymous said...

Daripada komen2 di sini saya rasa kerajaan perlu menerangkan lebih lanjut mengenai GST kerana ramai orang tidak faham konsep GST.

Setahu saya GST yg kena dibayar oleh pengguna ialah yg terakhir.. maknanya jika rangkaian barangan ialah pengilang ke pengedar ke peruncit dan katakan semua GST ialah 4%. Harga permulaan ialah RM1. Pengilang akan charge pengedar RM1.04. Pengedar lepas mengambil untung 20 sen sepatutnya menjual kpd peruncit RM1.20 tetapi dia akan caj peruncit RM1.248. Walaupun caj yg patut dibayar kpd G ialah 4.8 sen tapi sebab pengedar telah dicaj oleh pengilang 4 sen.. dia boleh claim.. so bayar to G cuma 0.8 sen saja. Peruncit pulak lepas ambil untung 30 sen sepatutnya jual kepada penguna RM1.50 tapi sebab GST jual RM1.56.. tapi byr pada G ialah 1.2 sen (6 sen - 4.8 sen) saja sebab boleh claim 4.8 sen yg dicaj oleh peruncit. Kebaikkan kepada kerajaan ialah.. dapat pungut tax di setiap pergerakan barang berbanding dgn SST hanya bila barang dijual kepada penguna terakhir.

Saya sangat2 bersetuju yg peniaga2 di Malaysia banyak yg tak ethical..saya takut dia "claim" dari G tapi masih kira tax yg di claim sebagai kos e.g instead of charge RM1.20.. utk untung 20 sen.. dia charge RM1.24 instead.

Oleh itu G mesti ada strong process & enforcement to catch all these potential cheats. If not, rakyat tertipu lagi..

M.Khalid

looes74 said...

Aiyaa.......GST is a regressive tax whereby the poor & middle class would end up paying more. The rich including Rosmah Mansor would not pay more because I am absolutely sure there would be reduction of income tax

GST can be addictive too. So does revenues from Petroleum, Liquor, Tabacco & Gambling taxes. Once you start implement this GST, it would go up. Singapore is one good example! From 3 to 5 to 7%. Hehehehe

Why implementing GST? 2 things

1) APEC.....Custom duties & excise taxes have to reduce to zero. In order to recover those M$$$$$$$. GST is a consumption tax, plus every government in the world work around the loophole to suck up of the money being lost because of APEC. And of course, all the Bilaterals with countries including United States og America.....Hahaha

2) Just like PERC says about Malaysia being instable, I can add on further......

Malaysia is running out of money.....

Guys,
Before some of the melayus start shouting vulgarities on me, better to come clean on this. Else, Malaysia would go the Iceland or even Argentina's way. Broke, bankrupt.
Think why readjusting fuel subsides. Plus the sugar subsidies. For God's sake for some melayus, step out off your caccoon & think.
GST is anyway of sucking money from us. I would not be surprised if the government would start the campaign of increasing EPF contribution.

I have nothing against government collecting revenues so long that every money spent is meant for peoples' welfare....With all leaks going on, hmmm.........I am afraid with Billions generated from GST revenue would dissipated into thin air.

Kadir,
This time, the one that hurts the most are melayus like you.
You can either be like Tengku Razaleigh or be like slimy Rocky Bru

mardhiah said...

Yup, listen to the expert first. Policy-policy maker kita majoriti Melayu. Melayu itu Islam. Sebusuk-busuk orang Melayu pun, kita tak akan sampai ke tahap seolah Malaysia ini sedang dikuasai oleh segerombolan Syaitan yang ganas yang akan menakutkan pelabur asing dari membuat untung di sini.


Dalam hal GST ini kerisauan saya hanya satu, "are we ready"


We merujuk kepada pasukan yang akan terlibat secara langsung dengan GST. Dari segi pelaksanaan & penguatkuasaan. Apa-apa sistem waima sistem dari langit pun akan hancur jika tidak disokong oleh Human Capital yang mantap.


Dalam satu hal pula, GST ni benda dah lama, sejak my Andersen days (early 90's) pun one of the partner dah cakap pasal GST ni, tapi asyik tertangguh saja.


Each year kita punya urusan makin kompleks dan makin mahal. Mana ada benda yang makin murahkan. We can't afford to make do without the GST.


Take note, ini pandangan orang yang sedang memikirkan secara serius untuk mengkhusus dalam bidang percukaian. Jadi kesukaan saya terhadap GST mungkin bias.

A KADIR JASIN said...

Esteemed visitors and debaters,

1. Indirectly conforming what we are discussing in this blog, 2nd Finance Minister Ahmad Husni was today quoted by The Star today as saying that “with the higher tax compliance, the Government could generate additional revenue that would go back to the people through socio-economic development such as the provision of better infrastructure, education, welfare and health services.”

2. The Edge newspaper on Dec. 16 last year quoted Ahmad Husni saying: “Under the SST, the government gets close to RM12 billion a year. But under GST we will be collecting more than RM13 billion in the first year of implementation."

3. This higher revenue, apparently despite the government promising that up to 40 essential items will be excluded from GST.

4. It’s clear that the minister and his GST “expert” are not cross-referencing each other.

5. This gross failure of “the management of information flow” will confuse the public and may cause the government dearly.

6. To give the minister the benefit of the doubt, please read the following report from The Star today (published in full):-

edy@thestar.com.my

KUALA LUMPUR: Malaysians need not worry about paying goods and services tax (GST) on certain basic necessities and services under the new tax regime targeted for implementation in the middle of next year.

The Government has decided that 40 basic goods and services will be exempted from the GST, said Finance Minister (II) Datuk Seri Ahmad Husni Mohamad Hanadzlah.

They included basic foodstuff, residential accommodation, education, health services, public transportation and domestic water and electricity supply to a certain limit.

“The Malaysian GST model is being carefully formulated, taking into consideration the interest of the population at large, especially those of the lower income group,” he said when opening the National Conference On GST: Roadmap to Malaysia’s New Taxation System yesterday.

GST is a consumption tax on imported goods and on supplies of goods and services in the country.

It was earlier reported that certain goods such as rice, sugar, salt, flour, eggs, meat and chicken as well as the first 200 units of electricity and 35 cubic metres of water utilised could be exempted from the tax.

Ahmad Husni said more than 140 countries had successfully implemented GST. Among Asean countries, only Brunei, Malaysia and Myanmar had not implemented it.

“If 143 countries have done it, why not us?” he said, adding that a number of countries having lower purchasing power than Malaysia such as Venezuela, Kazakhstan, Brazil and Sudan had implemented GST.

“The introduction of GST is to ensure that Malaysia’s fiscal footing is on firmer ground as we embark on our quest to be a high-income economy within the next decade.”

He added that GST too had in-built cross-checking features and this would enhance tax compliance.

“It is a self-policing mechanism that facilitates its administration and makes it difficult for anyone to avoid or evade this tax,” he said.

Ahmad Husni said with the higher tax compliance, the Government could generate additional revenue that would go back to the people through socio-economic development such as the provision of better infrastructure, education, welfare and health services.

Anonymous said...

DAKJ,

Ahmad Husni masih tidak menjawab berkenaan isu tambahan yang saya ketengahkan - seperti kata amoker "compounding 4 percent accross the chain".

Lagi pula siapa yang menanggung "peningkatan pendapatan cukai kerajaan" ini? Bertambah cuak saya bila Ahmad Husni kata "It is a self-policing mechanism that facilitates its administration and makes it difficult for anyone to avoid or evade this tax,"

Self protection? Jadi mana perlindungan kepada pendapatan rendah? Setakat 40 jenis barang sahaja? Dalam setahun dua ini, kita sudah merasa kenaikan harga beras, gula, telur, ayam dan roti (kelima-limanya termasuk dalam senarai Ahmad Husni). Dan saya percaya baja, benih dan makanan binatang ternakan tidak masuk dalam senarai 40 barang; jika tidak Ahmad Husni tentu dah sebut.

Yang saya tahu, sudah bertahun kerajaan menggunakan mantra "kakitangan terhad" bila memberi komen tentang isu kawalan harga.

Mardhiah,

Saya tahu ramai kakitangan awam yang pedih ulu hati bila rakyat skeptikal dengan mereka.

Tapi rakyat pedih ulu hati DAN bernanah poket bilamana terlalu ramai kakitangan awam yang buat political statements.

"Kita akan guna wang dari kenaikan harga petrolium untuk menambah baikan khidmat pengangkutan awam dan pendidikan"

"Harga asal minyak tidak dinaikkan. Cuma ditukar dari RON96 kepada RON95"

"Tukarlah gaya hidup"

"Proses pinjaman perumahan dipermudahkan"

"Ekonomi kita akan pulih pada tahun hadapan"

"Bukan satu enjin tapi dua yang hilang"

Banyak lagi jika Mardhiah mengikuti perkembangan. Tak perlu pun baca media PR, di MSM semua ada.

Hanya kerana Kamariah pakar, kita tidak boleh persoalkan? Terima sahaja?

Dan bila kualiti graduan semakin menurun, kita kata mereka pasif dan tidak pandai berartikulasi, bukan begitu?

Saya masa sekolah dahulu sudah diajar why, where, when, how dan what. Dan masa sekolah dulu saya diajar guna ilmu yang dipelajari di dalam kelas, guna dalam kehidupan.

Tidak pakar maka tak boleh komen? Kena telan sahaja? Yang di RISDA, berapa ramai kakitangan yang pernah menoreh getah?

Pernah dengar istilah knowledge based society? Ataupun bila PM dah bertukar, falsafah itu sudah tidak diguna pakai lagi?

Jangan keliru, islam tidak bermakna maksum. Yang maksum hanya nabi je. Sebab itu juga ada syurga dan neraka. Semua amalan akan ditimbang dan dihisab.

Oh ya! Lina Joy tu melayu ke? Islam ke dia?

Fed Up

langit biru said...

Tok

Siapa yang mula-mula perkenalkan GST?

Yahudi et al kaa?

( bab-bab meng"google" ni mungkin Saudara Affendi Hussain dapat bantu)

langit biru said...

GST (Australia)

John Howard was re-elected leader of the Liberal party in 1995, and pledged to "never, ever" introduce the GST. Howard led the Liberal-National Coalition to a large victory in the 1996 elections.

In the lead-up to the 1998 election, Howard proposed a GST that would replace all sales taxes, as well as applying to all goods and services.

The Howard Government suffered a 4.61 percent two party preferred swing against the coalition, gaining 49.02 percent of the vote, but retained a parliamentary majority of seats in the lower house, describing the victory as a "mandate for the GST".

Lacking a Senate majority, and with Labor opposed to the introduction of the GST, the government turned to the minor parties for support.

CopyPaste from wikipedia.

....dok imagine bagaimana MP-MP kita nak berbahas di Parlimen!

Azman said...

Y.Bhg Datuk AKJ,

Mohon laluan bagi komen sikit kpd Sdr looes74.

Sdr,

While I can partly agree with your comments about the ‘imperfections’ and ‘hazardous’ nature of GST, and our government’s motives to implement this expenditure tax system, I totally cannot see the relevant and logical points of you worried about “melayus start shouting vulgarities” on you.

Are you having preconceived prejudices about Melayu?

Correct me if I’m wrong but from your comments, it appeared to be that you are saying that Melayu do not know about GST so much so that when a person like you gives comments about GST and the government, the Melayus would start shouting.

Your comments also appeared to be that you are implying that Melayu are living in cocoons that it compelled you to explain about APEC taxes mechanism as if your explanation carries with it reliability and proven facts. Do you honestly think that by virtue of you throwing some global business jargons in your comments that you would be seen as a “global player”, and Melayu is living in cocoons?

Think back.

Then you urge Melayu to think as if PERC cannot be refuted at all (I assumed that based on our DPM’s counter statement about Hong Kong PERC’s report). It is as if when one Melayu Deputy PM disagreed about the “PERC’s gospel truth”, the whole Melayu must be labeled as “unthinkable” lot.

What a nonsensical preposterous thought you are having, man?

While I am a person whom cannot telan bulat-bulat whatever our government says, I definitely cannot telan bulat-bulat also about whatever you say.

Perhaps, you are the one whom should be doing the thinking part and try to look around more often whether Melayu are really living in cocoons.

Thank you

Azman Mohd Isa

umar said...

The whole idea is how to tax every household more.So tax on water and electric, telephone bills.
You pay sales and service tax if you eat certain in places only like hotels,pubs, KFC etc. Now with GST, you have to pay multiple tax on anything. School uniform for example; you pay GST on socks, tie,shoes,shirt, pants ,school-bag..etc
They justify this GST because so many other countries are implementing it. So Malaysia must follow. can prices go down ? Will manufacturers pass the savings to customers ? What a joke from experts ? Very soon she would get Tan Sri title for saving the country.Some excited royal house will confer on her .Does anybody really care about the escalating prices ? The usual excuse is , the government is paying subsidy so now the time is to remove the subsidy.So Malaysia becomes high income economy.High income for whom ?

Anonymous said...

Pak Ngah,

masaalahnya ialah gomen kita tak efisyen..tu sebab kena naikkan cukai. kalau nak ikut style zaman dulu gomen kita ni dah lama bankrap sebab tak cukup dana (real cash as in real gold/assets)

disebabkan kita guna duit kertas (fiat money) maka bolehlah dijalankan bajet defisit (bajet hutang) dimana tak cukup cetak lagi duit kertas tak banyak...sikit pun buat jugak...bohonglah kalau tak buat kerja merepek ni. tambah tambah lagi dengan keadaan ekonomi sekarang. dahlah tu kita punya pak menteri pun memang kalau "tak kaki bohong" sekali pun bukannya "kaki full disclosure".

sekarang ni yang saya tengah congak berapa lama boleh tahan tu je....lepas ke tak lepas PRU yang akan datang....jom kita kira...

Keturunan Jebat

Tinta Hitam said...

Datuk,

Hmmmnnn....You so sensitive with burqas but don t find miniskirts offensive and immorals

Tok Kemuning said...

This GST of 4%(and would be increased from time to time)is additional from 26% from our current income tax.

So with the GST we are actually be paying almost 30% taxes.

Better imposed 2.5% taxes across the board on everyboday regardless of their incomes (above government poverty line ). This means everybody that has money would need to pay the 2.5% taxes.

Government acknowledged already that not that many people paying the income tax. Perhaps using zakat approach is the only nation in the world doing it.

We are following too much of the capatalist agenda and this GST is one of them.

vinnan said...

Azman Mohd Isa,

How many non -Malays are in Perkasa.

Umno_supporter said...

Dato,

GST is a broad based consumption tax, kenapa ianya dilaksanakan saya rasa nak broaden kan tax base. Terpulang kepada komposisi bahan, GST may give government revenue yang banyak.

Dia macam ni katakan dulu hanya ada 10 barang kena sales tax, with gst ada 20 barang kena, tapi dari 20 barang maybe 2 kena exempt and 2 tax free, so 16 barang lagi kena tax, so tax @ GST rate on 16 barang ni adakah lagi banyak dari sales tax on 10 barang, itu saya tak tahu lah.

Bagi saya harga barang yang dulunya tak kena sales tax akan naik by the amount of gst. Untuk saya ok lah, sebab nama pun broad based consumption tax, semua kena.

Tapi apa yang memusyilkan kan saya is the internal process. Jikalau internal process government tidak cekap, harga barang akan naik dengan lebih tinggi lagi dari kadar GST.

Sebab nya adalah begini, mamat b bayar mamat a harga barang with GST, mamat B jual ke mamat C with GST, mamat c pulak jual ke end consumer dengan harga + gst. so mamat b and mamat c sebab dia dah bayar gst upfront dah dia lambat nak recoup balik, mamat b and mamat c akan naikkan harga barang, harga barang akan naik berdasarkan cost of fund dia la.

Unless after mamat b and mamat c bayar, then bila mamat b and mamat c dapat from end customer, they can deduct the cost of funds.

Or unless after mamat b and mamat c bayar je terus dapat refund.

I dont know what is the impact to the harga barang - barang, but if i'm in business, i will be very concern about this.

Tanya la budak budak yang belajar di australia semasa John Howard nak implement GST, it is a mess.

The compliance cost is very high. Cuma satu je la , accountant akan banyak kerja after this

Anonymous said...

Dato'
Mana ada cukai yang dikenakan kepada rakyat tak membebankan rakyat? Selagi rakyat memerlukan wang yang lebih untuk berbelanja..semestinya iakan membebankan.
"UMNO JUARA RAKYAT- MEMANG UMNO JUARA DALAM MENYUSAHKAN RAKYAT"

Memperbodohkan rakyat dengan segala macam kenyataan retorik hanya akan meletakkan BN dan UMNO jauh dari hati rakyat.

PRU 13 , rakyat akan memberikan nilai KPI yang sepadan dengan jasa-jasa UMNO dan BN.

Anak Bota/Parit

budak gombak said...

GST if implemented and govern correctly, I doubt there will be any mulitiplier effect on final price.

Let say a Supplier sell RM100 to a Manufacturer, Supplier paid RM4 as GST. So Govt pocket RM4.

Manufacturer then add value say RM50 to the cost, now the product cost consumer = RM150. Manufacturer then pay GST (4%*RM150=RM6) but at the same time can claim from Govt the Input tax of RM4 that Govt has collected from Supplier.
Net to Govt = RM4+RM6-RM4= RM6. So the final GST to Govt = RM6 or 4%*RM150.
Govt did not make RM10 here as final cost to Consumer = RM156.

Compare this to current sales tax, you can figure it out yourself.

To me, there should not be any multiplier effect, since Govt collection at 1 stage of the product added value stage, it will have to reimburse in the next cycle. The big question is how efficent is the system is.....only God knows.

affendi hussain said...

vinnan..

Why busy body about Perkasa? You also want to be a member? how suprising.. I thought you already got Hindraf.

looes74?
why so malay-prejudice? the way you put yourselves with all that statements as if you are so superior and come from a different country..are you an alien?

Sdr langit biru..
Takkan asyik kita ni je nak subsidi info..don't be lazy..do your homework also..tak Islam lah camnie kawan..

("/)

Anonymous said...

I have 2 ideas on how to lower down the cost of GST implementation.

1. Use 25% of government officers and put them to fill up the forms for the traders.
2. We take out people's subsidy towards the maintainence of Ministers ( cars, houses,petrol claims etc., toll ).

amoker

Najib kept saying that people need to learn to live without subsidy. I reckon it should start with the government leaders first by taking away tax people's subsidy on the lifestyle.

vinnan said...

affendi hussain,

Inilah maksud saya. Perkasa asyik kata hak Melayu di rampas bukan Melayu. Dengan GST orang Melayu yang paling ramai menderita. Dimana Perkasa? Lagipun otak rasis mu lah yang fikir saya ini penyokong Hindraf. Kamu adalah produk BTN yang rasis dan bodoh tu.

affendi hussain said...

Vinnan,

"Inilah maksud saya. Perkasa asyik kata hak Melayu di rampas bukan Melayu."

Kalau ini dikatakan BODOH , ternyata orang keturunan pendatang seperti anda jauh lebih 'ADVANCE' daripada kami Melayu semua..anda hebat kerana mendahului kami!

Jadi selama ini siapa yang rajin mengatakan diri mereka kena "marginalized", ditindas, di "ethnic cleansing" & hak mereka dirampas org Melayu?

Jika saya dikatakan BODOH maka diri anda adalah dalam gandaan 100x dari kebodohan saya..

Tengok cerminlah... dan saya beranggapan anda hanyalah produk sekolah vernakular yg tercicir dan kecewa kerana tidak dapat berasimilasi dgn masyarakat majoriti....saya cuma boleh ucapkan..kesian Vinnan.. anda tiada harapan untuk "survive" disini utk tempoh 20thn lagi. Baik buat keputusan bijak sekarang kalau anda faham maksud saya. Org Melayu semakin hari semakin rasis, bukan?

p/s: it take a racist to know another racist.. jgn perasan bagus lah kawan..WE also can be 100x racist than you people if we want. My advice, stop leaving under depression and frustration.. migrate to Australia, the whitemen are the darling model of civilization in your kind mind & the Aussie really love your kind very2 much compared to the Malay over here. We are so bad you know..

("/)

vinnan said...

That's right Affandi, I am a racist because UMNO/Perkasa crooks like you made me one. Let me tell you how you people have done it.

From the day I come into this world I must affix a race to my name because of your racial definitions following the dictates of your colonial masters in the racial segregations of Malaysians. That in and of itself is not a big problem. However, when I go to school I am given less help than a Malay because I am a non-Melayu. When I apply for a place in a public university, I am told there is a racial quota which prevents me from registering in certain programs even though I am academically qualified. When I apply for a job in the government, I find that my application is set aside in favour of Melayus. When I buy a house I find that my Malay neighbour who drives a more expensive car than mine gets a 10-15% discount on the purchase of his house. I do not mind programs to help the poor but not at the expense of my opportunities and future. In other words the whites in Australia do not institutionalse their racism so that they can feed their greed at the expense Of the Indian students like what UMNO/Perkasa is doing.


When I complain about this INSTITUTIONALIZED racism, I am told it is because I am not Melayu. So, I ask the Melayus is UMNO Melayu? People like you shout "of course". UMNO = United Malay National Organisation, till today have no balls to drop the acronym given by its colonial British masters and yet the non-Malays are the pendatangs, prostitutes and beggars in the eyes of the UMNO/Perkasa Malays. It is UMNO/Perkasa the great saucy Malays who have turned me into a racist just like you people. I am a racist when it comes to your racism but I also know not all Malays subscribe to UMNO/Perkasa's racist ideology. When It comes to these Tuans of Tanah Melayu I cannot be a racist for they do not wish to make me one. Do you understand why many Chinese and Indians voted for PAS now?

Now you greedy people want to suck more money for your projects to keep the UMNO contractors happy by imposing the GST and removing the fuel and food subsidies. The non-Malays cannot do anything about your greed but when the imporvishedMalays go after your UMNO/Perkasa hide for bringing them great misery with the GST and subsidy removals let me warn you idiots to keep away from the non-Malays. You racist crooks destroyed the country, you pay simple as that. Lastly, if you racist idiots want me to leave this country, kick me out if you have the balls for this is my country too.

affendi hussain said...

"When I buy a house I find that my Malay neighbour who drives a more expensive car than mine gets a 10-15% discount on the purchase of his house."
- Last time I checked. its 7% discount on my house purchase. I really sympathized on you, not coz of not getting the discount, but on your hard effort to spin the fact. If that guy is a bumi and a staff of the developer ,he is entitled to a combined discount of 7%+5% = 12% exactly!..see, you put it 10-15%, why not an EXACT figure?? Coz, you're trying to spin Vinnan & we know..from an assumption jumping to conclusion?

"When I apply for a place in a public university, I am told there is a racial quota ....I am academically qualified."
- Do you have docs. to support your allegation? Who told you that? the Univ staff? I thought its all under UPU..Since PM 1Malaysia is so neuter, i mean neutral, why don't you lodge a report to him or Biro Pengaduan Awam Jab. Perdana Menteri together with supporting details, the Univ/Program/certs and the name of that person who told you about the quota.

"When I apply for a job in the government, I find that my application is set aside in favour of Melayus."
- So, the Univ you applied turned your application down.. so, from where did you graduate? WHICH Govt Dept & post did you apply for and and HOW did you apply? ANSWER this and we will see whether you are telling the truth or lies..

"From the day I come into this world I must affix a race to my name ...."
- That is a mutual decision made by your ancestors with our ancestors. Your ancestors also favour it that way. Although Article 152 stipulated Malaysia official languange is Bahasa Melayu, still you can have your Tamil school..so how good is that? Try Thailand & Indonesia. The contract work both ways: give off yours if you want ours off. Tapi org mcm anda cuma mahu satu hala..mana boleh kawan..

"When I complain about this INSTITUTIONALIZED racism, I am told it is because I am not Melayu."
- your INSTITUTION lies within MIC, PPP, PAHAM, HINDRAF for your 8% presence. You have more than what the Malays have.

"UMNO = United Malay National Organisation, till today have no balls to drop the acronym given by its colonial British masters.."
Sah buta sejarah India ni..British yg anugerah nama untuk pertubuhan yg menentang Malayan Union British?? How nice! Vinnan, you sound and look stupid with this & stupid for not checking your facts b4 putting your stuff up. Btw, what "I" in "MIC" stand for?

"..and yet the non-Malays are the pendatangs, prostitutes and beggars in the eyes of the UMNO/Perkasa Malays."
- Pendatang by fact is correct, you really wanted to deny that?..but i don't know about prostitute or beggars. Majority Malays do not think that are true coz it holds no fact basis..what about all those insult put by the pendatang on the malays generalizing US as bodoh, pemalas & jalan pakai tongkat?

(The adjacent part of this I cannot answer you Vinnan, coz i'm not an UMNO or a Govt. Ministers..throw that question to the right audience..Try ranting about GST & racial thingy to a makcik nasik lemak or any laymen and maybe you'll get a big bang in the head to snap you out from your ignorance.)

"Lastly, if you racist idiots want me to leave this country, kick me out if you have the balls for this is my country too."
- This is Malaysia..not Indiasia or Cinasia..so behave like one to belong to one. Period.. otherwise somebody will definitely going to kick your butt out. Even Australia, Singapura, or any part of the world except India is not Indiasia..a Malay cannot try to be a Malaysia if he/she migrated to other country..try to be funny with the majority there and then only you'll learn to appreciate how tolerance & compassionate are the Malays.

Remember..Lies is something that can bite you back in the @rse. Do not play with lies lah kawan..

("/)

About Me

My photo
I was born in 1947 in Kedah. I came from a rice farming family. I have been a journalist since 1969. I am the Editor-in-Chief of magazine publishing company, Berita Publishing Sdn Bhd. I was Group Editor NST Sdn Bhd and Group Editor-in-Chief of NSTP Bhd between 1988 and 2000. I write fortnightly column “Other Thots” in the Malaysian Business magazine, Kunta Kinte Original in Berita Harian and A Kadir Jasin Bercerita in Dewan Masyarakat. Books: Biar Putih Tulang (1998), Other Thots – Opinions & Observations 1992-2001 (2001), The Wings of an Eagle (2003), Mencari Dugalia Huso (2006), Damned That Thots (2006), Blogger (2006), PRU 2008-Rakyat Sahut Cabaran (2008), Komedi & Tragedi-Latest in Contemporary Malaysian Politics (2009) and Membangun Bangsa dengan Pena (2009).