Tuesday, May 15, 2018

GST sabo kaukau

MM Online - Weak enforcement prompted GST backlash, says tax expert:

KUALA LUMPUR, May 15 — Weak enforcement was one of the main reasons why the implementation of the Goods and Services Tax (GST) was met with resentment, which has led to its imminent revocation, said Pricewaterhouse Coopers executive director Raja Kumaran.

Many businesses also increased their prices, and this arguably placed an additional burden on the public even though the materials for their products did not come under the ambit of the consumption tax, he said.

“Many quarters took advantage of the weakness in enforcement to deliberately increase prices once the GST was implemented,” Raja told Malay Mail.

He cited the case of the roti canai seller who hiked his price the moment GST was introduced although flour was zero rated.

The GST was introduced in April 2015 to address the issue of falling government revenue. In 2017, Putrajaya collected an estimated RM42 billion through GST.

The tax was, however, criticised as regressive, because the poor were seen as bearing a higher proportion of the tax vis-a-vis their income compared to the rich — a fact that was subsequently used as a major GE14 issue by Pakatan Harapan when campaigning against Barisan Nasional.

Should it be abolished, Raja said Malaysia will be the first country in the world to scrap an already implemented consumption tax.

The new government has mentioned that it would re-introduce the Sales and Service Tax (SST) in place of the GST, but has offered no further details.

Raja said in other countries, the GST, which is also known as Value Added Tax (VAT), is an efficient means to increase government revenue, but its implementation and enforcement in Malaysia have left much to be desired.

He also lamented the fact that the Royal Customs Department, which had been entrusted with the collection of the GST, had been slow to return input tax credits to businesses.

And don't forget how one news media published the lie that asserted kerang and kembong were GST-ed.

That's what would be correctly termed as Fake News, and on a more sinister level, national economic sabotage.

I recall that Mahathir had in earlier days said the need to abolish GST shouldn't be rushed, but now I don't think he would want to say that again. He is aware of the humongous (and misdirected) anger against GST.

Pride goes before a fall in PH obdurately getting rid of an efficient tax system.


  1. Kita tunggu dan lihat apa akan jadi when they have to set the SST rate at 8% or 10% or 12%?

    A word and a stone once let go cannot be recalled. ~ Portuguese proverb.

    1. Yes yes yes....we will charge folks like Unknown 50% SST since you will get 72 virgins aftermath.

      Hence no need to keep so much money......hahahahaha

  2. There you have it. It wasn't GST that made prices went up but the greed of opportunistic business people. Unscrupulous, unethical, immoral, and without gumption to shift the blame to Najib.

    As for making world history, we did become the 1st country in the world to bring back a dictator, in electing world's oldest PM, so what's another entry into Guinness World's Book of Records?

  3. gst is such an efficient tax collection system that it literally brought down an entire gomen... perhaps umno should commission kt to do a thesis on why and how it happened and we can all learn from it...no one, not even the kampung folks doubt it's the best system for collecting tax revenue for the gomen..

  4. If the gomen cannot control from sourcing of raw materials to finished products, jgn gatai nak buat. Ini gst versi malaysia.

  5. No GST or SST. Period.

    Just recover all the loot, pilferages, unproductive subsidies, bailouts, grants, leakages etc etc

    And more than enough to forgo GST or SST at least for a few years without hunting for additional revenue.

    1. R u having access to zeti?

      But she ISN'T as ambitious as u. She wants to keep sst.

      Perhaps, u r twisting again to try sh*t-stirring.

  6. try talked to retailer, many said gst kill their biz, they look forward mahathir, one even told me the era of union paper when everyone is making money. najib best contribution to mahathir is elevated him to become a chinese money god.

  7. Will Kaytee come to putrajaya to NAKED protest against the abolition og GST?


    The sky is failing?