Friday, March 27, 2015

GST & Post GST Era for Malaysian

The BN Government keep saying that GST 6% will not increase the burden of Malaysian. They claim that in fact more items will be priced lower when GST is implemented due to the the replacement of sales tax 10% with GST 6%.

Theoretically the above statement is right. But in reality, I bet most of the items will be increased in price, especially for small businesses that has tight cash flow as they have to consider the additional risk on the GST 6% which may not be able to claim back or the entire deal become bad debt.

GST has also increased alot of paperwork. More manpower will be needed in administrative works like preparing & printing tax invoices. Paying, tracking and claiming back input tax that involved tedious accounting processes. I guess the organization like Price Water House, Ernst & Yong, KPMG and all the accounting & audit firms will be benefited from GST.

There is nothing much the consumers can do. Such practise the putting organization with big cash flow into a very advantageous position. SME will be hit. After the implementation, the social issue like the gap between the rich and the poor will be widen further.

The only hope we have is the government to reduce personal income tax, invest the tax money into something beneficial for the country.

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