Wednesday, May 23, 2018

6% GST replaced by 10% SST

FMT - SST will definitely be implemented this year, says finance ministry:

PUTRAJAYA: The sales and services tax (SST) will be rated at 10%, its previous rate, before the goods and services tax (GST) was implemented in 2015.

Finance Minister Lim Guan Eng said efforts were being made to implement SST as quickly as possible.

GST will be zero-rated from June 1.

When asked how the ministry planned to recover revenue lost from the removal of GST, Lim said the ministry was looking at several options.

First, the ministry needed to have a full and accurate view of the nation’s actual financial position, Lim told a press conference at the finance ministry.

Malaysia obtained RM44 billion in revenue from GST last year. Pakatan Harapan scrapped the GST once it took power after the May 9 general election, in keeping with promises made in its election manifesto.

It has maintained that any shortfall in income from SST will be met by plugging leakages in government expenditure and reviewing mega projects.

In 2014, the year before GST was implemented, the country earned RM17 billion from SST.

A rating agency, Moody’s Investors Service, today said the move to remove GST will be “credit negative”, unless the new government takes steps to offset the loss in revenue.

“Assuming a stable share relative to GDP, and taking into account seasonal patterns, we estimate the revenue loss from the voiding of the GST at around 1.9% of GDP this year.

“We also estimate that if the SST, which yielded revenue of around 1.6% of GDP before the GST replaced it, takes effect in July, the revenue loss would narrow to 1.0% of GDP for this year,” said Moody’s.

While these losses can be mitigated by the higher oil price, this was not a permanent substitute for the GST, and was not a reliable offset to lost revenue given the volatility of prices.

I have often written that oil is a curse and we should not depend too much on it to jaga our economy. Don't spend it like money falls down from Heaven a la Moses' manna, but rather consider it as a bonus for our national savings to look after our elderly, veterans, the less fortunate and our children's future in the long term.

But I am glad the SST at 10% will replace the GST at 6%, wakakaka. 

Though not as sweeping as the GST the SST will hit those who didn't realise the fairer and more embracing GST. No one escapes GST thus no favouritism nor kowtim-ness. But SST will have loop-holes which Guan Eng will have to watch out for.

I have always advocate the GST as I live under the Oz GST and know its value and efficiency, but it's the Malaysian voters choice, the only one in the world where SST comes back to replace GST. Malaysia Boleh.

However, don't be surprised if the PH government will ratchet up the GST from its current 0-rated (yes, GST still exists) to some figure in the future, maybe in a couple of years time. So the GST lurks around, waiting to pounce on gullible guppies.

As for the much touted reviewing mega projects I hope we don't buy back Proton from Geeling, nor re-build the crooked bridge nor come up with some other pompous fanciful stuff.

It's a pity we didn't practise reviewing mega projects in a former (and current) PM's days on his extravaganza projects.


  1. SST mainly covers higher value items, which were being purchased by people who could afford it more.
    The leakages will be plugged - that is Lim Guan Eng's forte.

    Just like oil, easy tax money from GST is a curse.

    Now we realise Malaysia was using large chunks of it on covering Off-Balance Sheet black accounts. The previous Finance Minister was an Enron-style Crook.

    1. You are right. Its a kinda drug where once u check in....hahahaha

      We should ask kaytee to show us proof that he contributes bigly to malaysian coffer through malaysia gst

  2. Still can't accept that the now Dr M is not quite THE Dr M of the then ? Some signs are there so plainly but only those who persistently refused to accept...hence, none so blind as those who refused to see.

    The economic woes will descend upon us soon...all thanks to your Kleptocrap fallen hero...the absolutely despicable using MOF to secretly bail out 1MDB while lying blatantly to the people...sending out his running dog Arul Anaconda to pull wools over eyes...remember he gave one special presentation to PAS leadership and these cave dwellers were practically glowing in their support of the Kleptocrap....ohhh...Council of the Elders soon, gleefully rubbing their grubby hands and salivating at that prospect.

    Dr M might be old at 92 but he's quick witted lah....after sacking 17,000 political appointees in the PMO, only lame brain like you would think he would want the crooked bridge back. In fact, the old man is more likely than not is even now grappling with how to ensure enough funds to pay the huge salaries of the bloated civil servants.

  3. Rather than listening to credit rating agencies, economists, financial analysts etc on how to sustain the revenue shortfall from GST of about RM40 billion even without SST.

    Here is a possible suggestion to think out of the box.

    Cut immediately the OE of about RM 280 billion and clamp down on additional Supplementary Budget requests every year.

    Reducing such expenditure is not impossible and can be eased via stopping leakages, more austerity measures, less wastages etc besides enhancing enforcement of IRB and Customs revenue collection. Govt.Assets sales should be considered for depts and agencies having non revenue generating assets and which carries high maintenance costs yearly.

    It should not be difficult for the Govt. to be more frugal in their spending for at least a few years and starting with a lower OE base.

    It's a matter of Political Will to do the necessary rather than a problem of intractable financial quagmire of GST shortfall.

  4. Wakakakakaka……

    U r still lamenting about that 'good old days' of mamak regime!

    Like it or not, mamak is a changed man with a mission before his passing!

    He ain't no leopard but a chameleon - change to suit the surroundings.

    If there is a leopard, a lame one, then it's u for continuing yr grandmother's broken record about mamak.

    Eat yr heart out!

    BTW, why so miao2ly quiet about ALL the exciting happenings surrounding 1MDB?

    No evidences? No proofs? While the values of the loots r still been estimated!

    U need 4 male adults to solidly confirm the booties r belonging to jibby ke?

    Stay tune & keep looking for ANY indefensible loopholes to dress up yr idol lah.

    1. This is called 声东繫西 ma....very 高招one


    Wah Lah Wooi...MACC raids Tabung Haji chief’s home and office....

    Abdul Azeez Abdul Rahim...the very holy guy (Tabung Haji you know)
    with permanently bruised from prayer sessions...also corrupt kah ?

    Really shocking...

    Many of the Tabung Haji contributors are kampong pakciks and makciks saving money for the trip to Mekah....

    Stealing money from them...VERY cruel if true...

  6. Malaysian propensity for records strikes again. The 1st in the world to revert back to SST after GST. However I believe that's just wayang to show the rakyat that they're fulfilling their promises. Once the excitement dies down, or oil prices go south again, PH will find all sortsa excuse to reimplement GST again, but this time with support from their zombies.

    1. my belief too, wakakaka, the fCking hypocrites

    2. So Ktemoc starts off with animosity, ill-will and prejudice against the new Administration.

    3. What about u cheebye kaytee? You never show your photo or ic or document or credential.

      What are you? Tuhan also u. Hantu also u hor. Cheebye

    4. No problem for these hypocrites. They will happily lap up the bullshit coming from their leaders while enjoying being anally raped.

    5. Still haven't given up with your procastinations to smear whatever PH is doing. It's actually a disease which can be easily cured just by keeping quiet and enjoy the ride like othere and cheer along.

      For, if they failed in undoing the damage, all of us including the precastinators will die from hunger and poverty in a failed Nation.

      If the procastinators have nothing to contribute, perhaps distributing your ill gotten gains to the poor would be a better contribution to the country.

    6. how can I be a hypocrite when I laid my cards openly on the table, that I do NOT support Mahathir and LKS though I support DAP and Amanah in the main

    7. john, we call them gullible guppies, wakakaka

    8. Ooop… laying yr cards openly on the table?

      It's just for show lah. Superficially support DAP and Amanah in the main. But actually a jibby ass-licker as u consistently proven in yr writings.

      If that's not hypocrite, then a strumpet must be a virgin!

      Gullible loopies like u, as it's known in GodZone!

      While labelling others, yr mirror shows what?


    9. I just call them 'The Willing Saifuls'. Hohohohoho!

      When the new administration starts to dishonour their promises not even 1 month into their reign, then they deserve all the animosity, ill-will and prejudice.

    10. aren't you a Mahathir arse licker? If mnot, a LKS arse licker? Take your pick - you just lack independent thinking. You chief motivator is Hatred

      You are just another Hew Kuan Yau without basic civility and proper upbringing and the sort of person the Malays love to hate

    11. I know kaytee sucks jib cock every day

    12. Wakakakaka…… u r REALLY one pathetic double-faced!

      Me, Mahathir arse licker? LKS arse licker? Take your pick lah.

      U know very well about my takes about these two politikus from all my writes & yet u still want to mis-label me! Where's yr so called independent thinking?

      Have yr wordsmith skill reached its ultimate mind block such that u just have to mumble some inconsistency to vent yr frustration ke?

      Let me dispel yr sudden lack of imagination caused by the result of ge14 lah.

      My chief motivation IS my total disdain for that bigoted hegemonic umno - u can called that hatred indeed.

      Lack basic civility and proper upbringing?

      Vis-a-vis showing the blunt FACTS directly to yr face?

      How about comparing that recourse with yr superficial miao2 ampu-ings to please & veiled obscenities to curse?

      If yr family upbringing is upright & cultured, u would have known 良言逆耳 (good advices r direct & painful to listen).

      Good advices r straightforward, easy to understand & definitely not flowery sims to pace the listeners. But they r DEFINITELY not pleasantries to the ears of the listeners!

      For an anmokauxai like u, u play to be a pseudo pommie gentleman. U refuse to call spade a spade. Instead, u beat around the bush just to ampu yr melayu audiences.

      Majority of the Malays love to listen to spurious flowery talks that pace their egos! Hence, they r forevermore get trapped within beautiful lies & cockagroo talks that hinder their mental progresses.

      Only the blur-sotongs, the ketuanan freaks & the zombies CAN'T accept my direct comments.

      It's their choice!

  7. Really can you blame Malaysians for rejecting GST, even if it is 1%, when they see their PM and Finance Minister and his family with so much unexplained wealth, the politically connected with govt jobs, the corruption in govt institutions etc? Just where is this GST money going to? Hermes bags? Patchi chocolate? Secret Red files? I will gladly pay 20% GST, once we are in the top 10 on the Corruption Perception Index and my govt can give high standards of social services. Until then, sayonara GST.

    1. are you saying that obscene social disparity did NOT exist during Mahathir's previous reign?

    2. Lets call a spade a spade.
      For most working Malaysians, the GST was a significant Tax Increase.

      Getting a Tax Increase , in the middle of an economy where it was harder and harder to make ends meet, AND watching the obscene social disparity and corruption is TOO MUCH to stomach.

      Sayonara to GST.

    3. So according to kaytee theory, men can never turn over to a new leaf. That means also no mercy should be shown to najib and rosmah.

      Oooi...mai tu....where is guillotine? Time to chop some heads

    4. Nothing to do with social disparity. Today Malaysians hear about the secret intelligence organization within the PMO siphoning off 3 billion for themselves. True or not it doesn't matter. Malaysians, rich, middle class or poor, are sick and tired of a govt sucking GST blood like a leech while growing fat.

    5. Here is what the esteemed economist Ramon Navaratnam, have to say about the politicisation of GST.

  8. The loss of GST tax income is an open issue that Malaysia can now deal with in a transparent manner.

    What is much, much more dangerous for the country , Greece-financial meltdown type of dangerous , was the Off-Balance Sheet Secret Black accounts (Lim Guan Eng called them Red Files) which the Crooked Thief Previous Finance Minister (Ktemoc's ex-Boss - no more leakages) practiced , only now coming to light.


    Arul Kanda meets Lim Guan Eng.....would have been mighty interesting to be a fly on the wall in the Finance Minister's office during the meeting.

    Time for Arul Kanda to do a Billy Joel and sing "I am an innocent Man"...

    Where is he getting the money to pay the RM 147 Million due from 1MDB to its creditors next week ?

    No more MOF cheque...don't play-play with Tokong Lim Guan Eng...

    1. No problem. The debtors will just seek a court order of insolvency on 1MDB, and thus onto MOF Inc which now owns it, and thus onto the MOF, and further onward to declare the Malaysia bankrupt because MOF is under the Government of Malaysia. PH will create another history of being the 1st ASEAN Government to be declared bankrupt due to their refusal to reimburse the repayment. Congratulations are in order!

    2. What happened to the Successful 1MDB Rationalisation plan ?

    3. As shown by lge, the Successful 1MDB Rationalisation plan is to transfer ALL the liabilities to MoF & let the rakyat to pay for hippo/jibby's opulent & shameless indulgences!

      If bn won ge14, the rakyat WOULD all been f**led kau2 le!

    4. Ongoing according to saudara Arul. 1MDB assets have been transferred to MOF Inc as per PAC advice and its used to pay off the 1MDB debts as when the bonds mature. If MOF(read: LGE) via MOF Inc, refuses to honour the bond payout, then the investors have a right to sue MOF Inc as the rightful owner of 1MDB.