GST Malaysia

GST Malaysia

  • Submitted By: 进-顺
  • Date Submitted: 11/11/2015 9:16 PM
  • Category: Business
  • Words: 1933
  • Page: 8

Recently, Malaysian government had implemented a new fiscal policy which is goods and services tax (GST). Malaysia has started GST with 6 percent which is low if compares with other countries. Currently, the country that implement the highest GST is Hungary which is 27 percent. No matter good or bad, it really brings a great effect to general public and Malaysian economy. Goods and services tax is implemented in 160 countries in the world. Except the name of GST, it also can called value-added tax. The system of GST was first introduced by France in 1954. In Asia, India was the first country implemented GST with starting 10 percent. GST is a type of consumption tax. GST can describe as a tax that added on purchase price such as product, material and services for consumers. GST is just replaced the 10 percent sales tax. According to Royal Malaysian Customs Department (RMCD) (2015), the reason of Malaysian government implement GST is this is a part of programme that government want to reform tax in Malaysia so that enhance transparency, capability and effectiveness of tax administration and management. Besides, RMCD also stated that GST had been proven a tax system that can stimulate economic growth thus Malaysia become more competitive in the global market. The implementation of GST also makes the revenue of Malaysia become more stable due to it will take less effect from economic fluctuations.
About the implementation of GST, Malaysian government has complained about the impact of GST on consumer. Government states that the most effect from GST is about the prices of goods and services. Government says that the price effects are minimal because public amenities, basic and essential foodstuff will not be taxed. Besides, due to the GST which need to be paid is claimable by businesses so the production cost will not be higher and the savings which from the ITC will pass on to the consumers with lower prices. Furthermore, the percent of taxes of GST is lower than...

Similar Essays