Gst in Australia, Vat in Germany and India
COMPARISON BETWEEN COUNTRIES
AUSTRALIA
Australia Taxation Office levied Goods and Service Tax (GST) on goods and services provided in Australia. All imported goods are subjected to GST unless it is exempted such as foodstuffs and medical aids. Most goods in Australia are subjected to a 10% GST tax and 5% rate of import duty tax.[1] A person is required to register for GST if his business has a GST turnover of $ 75000 or more.[2] GST was implemented in the year of 2000, before it was introduce, it was criticized that it will impact on the lower income earners. However, there was no proof negative growth on Australia economy in the long run instead the economy is booming especially in real estate market after imposition of GST. It was believed that people are not paying more tax since there was corresponding reduction for personal income tax, federal wholesale tax and some fuel taxes. Therefore, implementation of GST in Australia can be said as a success.
GERMANY
Germany imposed Value-added Tax System (VAT) which is also known as Umsatzsteuer. It is a tax on transaction. Companies added VAT on their goods and services provided which will be chargeable on the end user of a product on the consumer. The current rate for VAT is 19 % and food, magazine and book are taxed on a lower rate which is 7 %.
One of the complaints about VAT is that it is a regressive tax. It taxed on the community by making private goods more expensive and public goods more redundant.[3] For instance, people are paying on higher tax on vehicle in order to be provided with a better road. According to a research by conducted by IMF, it was found that inflation is low in Germany if compare to other Europe countries that imposed VAT.[4]
INDIA
India is the second most populous country in South Asia; it has more than 1.241 billion of people and the authority which levied tax is divided between central and state government. State imposed Value-added tax (VAT) on goods whereas
AUSTRALIA
Australia Taxation Office levied Goods and Service Tax (GST) on goods and services provided in Australia. All imported goods are subjected to GST unless it is exempted such as foodstuffs and medical aids. Most goods in Australia are subjected to a 10% GST tax and 5% rate of import duty tax.[1] A person is required to register for GST if his business has a GST turnover of $ 75000 or more.[2] GST was implemented in the year of 2000, before it was introduce, it was criticized that it will impact on the lower income earners. However, there was no proof negative growth on Australia economy in the long run instead the economy is booming especially in real estate market after imposition of GST. It was believed that people are not paying more tax since there was corresponding reduction for personal income tax, federal wholesale tax and some fuel taxes. Therefore, implementation of GST in Australia can be said as a success.
GERMANY
Germany imposed Value-added Tax System (VAT) which is also known as Umsatzsteuer. It is a tax on transaction. Companies added VAT on their goods and services provided which will be chargeable on the end user of a product on the consumer. The current rate for VAT is 19 % and food, magazine and book are taxed on a lower rate which is 7 %.
One of the complaints about VAT is that it is a regressive tax. It taxed on the community by making private goods more expensive and public goods more redundant.[3] For instance, people are paying on higher tax on vehicle in order to be provided with a better road. According to a research by conducted by IMF, it was found that inflation is low in Germany if compare to other Europe countries that imposed VAT.[4]
INDIA
India is the second most populous country in South Asia; it has more than 1.241 billion of people and the authority which levied tax is divided between central and state government. State imposed Value-added tax (VAT) on goods whereas