Thursday, September 14, 2017

16% sales tax better than 6% GST?

From FMT (extracts):

Malaysia will become a laughing stock if the Goods and Services Tax (GST) is replaced with the Sales and Services Tax (SST), said Customs director-general T Subromaniam.

He said the 6% GST, which replaced the 16% SST in 2015, has been proven to be a more comprehensive, efficient and transparent tax system.

“Some 168 countries have already implemented the same system and the Middle Eastern nations are expected to follow suit, starting with the United Arab Emirates next year.

“The whole world will laugh at us if we were to revert to SST,” 

Even Mahathir advised that the GST won't be eliminated if Pakatan were to become government, and that the Sales tax (@16%) may have to be re-introduced.

A week ago, Mahathir was reported as saying:

Pakatan Harapan will only be able to abolish the Goods and Services Tax (GST) if the sales tax is restored, said former prime minister Tun Dr Mahathir Mohamad.

Speaking at a Facebook Live dialogue organised by a local news portal, Dr Mahathir said the process of abolishing the GST must be done gradually.

For the record, Pakatan Harapan had previously vowed to scrap the GST within 100 days of taking over Putrajaya.

“The GST must be replaced with the sales tax. So if we abolish the GST, we must restore the sales tax. But all processes involving the government must be done stage by stage.

“If we suddenly abolish it and we have no source of income, it will be bad for the government. In the past, even with petroleum, when we had to increase the price of petrol, we did it stage by stage so it doesn’t hurt the people or the government’s finances,” he said.

Yet others in Pakatan have made wild reckless promises that Malaysia will have the GST removed or rated at 0% (eg. Nurul Izzah), so making the whole country effectively a tax-free goods zone.

Lowyat3? Wakakaka.

Yet Mahathir said: “If we suddenly abolish it and we have no source of income, it will be bad for the government.

Oh, the irresponsible things and bullshit promises politicians recklessly make.


  1. 16% vs 6%? compare apple to orange again? the previous 10% sales tax is less burdensome to the lower income group. u got side income like dedak sure no problem one.

    1. dei, better pay up your dedak - don't hutang which you pkt-ista are so fond of, wakakaka

  2. Malaysia is already a laughing stock for the whole world with a Mega Crook as a Prime Minister trying to strut the world stge.
    When Najis meets world leaders, he gets due respect as required by protocol , he (unfortunately) is still the Prime Minister of Malaysia.
    But in the background , there is likely to be a smirk with all these foreign leaders, as their Intelligence services would no doubt have briefed them on widely available information of how big a Thief Najis is.

    People who want to publish Fake News, should at least do it intelligently with some little modicum of truthfulness.

    Never in the history of Malaysia has Sales Tax been 16%. The highest it has ever been is 10%.
    Mahathir didn't even mention any % number in the report.

    For this T Subromaniam dude I will say this.
    People who lack competence and capability to reach the top - and still manage to do so - usually do it two ways - by sleeping their way up (if they wear a skirt) or Ampu Bodek kau-kau all the way.

    1. that's true, sales tax varies from 5% to 15% approximately