Mister
Increase national/government revenue and mitigate the heavy reliance on income tax and petroleum tax, in which income taxes contributed 44.4% of government revenue in 2010.
Tax burden will not increase when income level increased.
“Everyone” will pay tax and tax burden is spread over, instead of just relying on income taxes derived from 15% of the working population.
Overcome the loopholes of current sales and services tax systems.
Eliminate over-lapping tax at different stages, as GST is generally charged on the consumption of goods and services at every stage of the supply chain, with the tax burden ultimately borne by the end consumer.
More stable for government revenue with GST as a consumption tax based, compared to direct income taxes and minimise the impact of economic cycles, particularly during recessions.
Corporate tax and individual tax rates could be reduced.
Minimise the occurrences of tax evasions.
Reasons disagree with GST:
May result in inflation as general products prices may go up.
Increase the tax burden on low income working group (the other 85% as described item 3 above)
The government may possibly increase the GST rate from 4% to 15% to increase revenue.
Worry that the GST tax may even higher than current sales tax 10% and service tax 5%.
Worry that the effect of tax revenue re-distribution may not be achieved.
35 3 5 2543
‘GST benefits outweigh drawbacks’
P Ramani | September 20, 2013
The Goods and Services Tax, when implemented, may cause a one-time price increase; though on long haul its benefits outweigh the drawbacks.
Budget2014 Feature
PETALING JAYA: Goods and services at present are subject to a one-time sales and service tax thus a low rate Goods and Services Tax (GST) may have differing impact on prices of goods and services offered, says Tan Eng Yew, executive director of Deloitte Kassim Chan Tax Services Sdn Bhd.
According to Tan, there are many factors to consider including if an item is presently taxed
Tax burden will not increase when income level increased.
“Everyone” will pay tax and tax burden is spread over, instead of just relying on income taxes derived from 15% of the working population.
Overcome the loopholes of current sales and services tax systems.
Eliminate over-lapping tax at different stages, as GST is generally charged on the consumption of goods and services at every stage of the supply chain, with the tax burden ultimately borne by the end consumer.
More stable for government revenue with GST as a consumption tax based, compared to direct income taxes and minimise the impact of economic cycles, particularly during recessions.
Corporate tax and individual tax rates could be reduced.
Minimise the occurrences of tax evasions.
Reasons disagree with GST:
May result in inflation as general products prices may go up.
Increase the tax burden on low income working group (the other 85% as described item 3 above)
The government may possibly increase the GST rate from 4% to 15% to increase revenue.
Worry that the GST tax may even higher than current sales tax 10% and service tax 5%.
Worry that the effect of tax revenue re-distribution may not be achieved.
35 3 5 2543
‘GST benefits outweigh drawbacks’
P Ramani | September 20, 2013
The Goods and Services Tax, when implemented, may cause a one-time price increase; though on long haul its benefits outweigh the drawbacks.
Budget2014 Feature
PETALING JAYA: Goods and services at present are subject to a one-time sales and service tax thus a low rate Goods and Services Tax (GST) may have differing impact on prices of goods and services offered, says Tan Eng Yew, executive director of Deloitte Kassim Chan Tax Services Sdn Bhd.
According to Tan, there are many factors to consider including if an item is presently taxed