1.0 WHAT IS GST?
Good and Services Tax or known as GST is a multi-stage broad-based consumption tax on good and services based on the value added concept. In some jurisdictions, it is also known as Value Added Tax (VAT). The idea of introducing GST in Malaysia was first conceived in 2005 for various reasons including to be a sustainable source of income to the government. After series of debate in the parliament, discussion and engagement series with stakeholders to take public concerns into account, the newly introduced tax finally came to effect on 1 April 2015 at the rate of 6% replacing the existing Sales Tax and Service Tax (also known as SST) which has been in force for decades and was controlled by Royal Malaysian…show more content… In a more positive side, they get to reduce business costs by claiming the input tax over raw materials or good and services paid at every level of the business. Furthermore, as GST has a self-policing mechanism, it helps the business to improve compliance. Other than that, it helps to lower down the level of bureaucracy as no approval is required for exemption on raw materials, which will speed up the process and increase efficiency. Most importantly, it will ensure that all businesses at all level will be treated the same as the same tax rate is applied to…show more content… The tax system is perceive as regressive and brings more burden than benefits. As discussed, all weaknesses identified should be addressed in order to create a ‘win-win situation’ to all parties. Government should continuously engaged and educate the masses on GST in order to get more people to participate and create more chance. As a conclusion, GST should be able to strengthen the Malaysia’s economy and increase its revenue by expanding the tax base while manage the tax burden of the public as well as help to improve the life quality of Malaysians.
5.0 REFERENCE LIST
Royal Malaysian Customs. 2013. Malaysia Goods and Services Tax: Guide on Supply. Royal Malaysian Customs: Putrajaya.
Alappatt, M., Shaikh, J. M. 2014. Forthcoming procedure of goods and service tax (GST) in Malaysia. Business Management and Economics. 2 (12): 210-213.
Mansor, N. H. A., Ilias, A. 2013. Goods and Services Tax (GST): A New Tax Reform in
Malaysia. International Journal of Economics Business and Management Studies. 2 (1):