History of Gst in Malaysia

Having a value-added tax has many different views, but many cons are shown through the system. With having a value-added tax means the tax on the amount of an item goes up based on its production or distribution. Value-added tax being implemented would clear out many peoples savings. It also would be a struggle on the lower classes, and has been called an “unfair regressive tax”.

There are two main types of taxes, indirect tax, and direct tax. Direct tax regards to tax that is levied directly on those who eventually pay them and cannot be moved on to others. While the Indirect Tax is a tax that can be exchanged in all or part to someone other who directly liable for payment. So, buying something from stores or and paying VAT is already recognized as the indirect tax payment. Overall, taxes are significant in our economy and society; I realized that each person of us must have contributed in developing our economy and that is through our taxes. But, right now I feel that money that we pay (tax) were not used correctly. Probably the government should use the money for the development and improvement of our very own society. After all, this Taxation is a material that helps a person understand how to spend money the on the right way and how to spend money on various taxes such as buying and selling products. It helps us to classify the different type of tax, how to calculate average and marginal tax rate. Also, it help to explain different tax system and how to calculate the VAT. We learn how to classify qualifying

All over the world, governments undertake huge public expenditure on behalf of their citizens for the provision of basic amenities and other social services. To meet up with these responsibilities, governments thus require substantial amount of funds. Among the various sources from which can generate income, taxes are the most important and most reliable; contributing much more than any other source. A tax therefore, is a compulsory levy imposed by the government on the income, profit or wealth of an individual, family, community, Taxation is the inherent power of the state, exercised through the legislature, to impose financial burdens upon subject within its jurisdiction for the purpose of raising revenues to carry out the legitimate duties of government (Kenned & John, 2014)

These liberal leaning tax policies limited the Uruguayan government’s capacity to operate efficiently and worsened economic conditions. While previous tax reforms reduced the tax burden on citizens, they failed because the system relied heavily on indirect taxation to support public expenditures (Martorano,

Since Uber started up, the issue of GST has been very controversial. Until recently, customers did not have to pay tax for the service (part of the reason why Uber was so cheap and therefore attractive). The Australian Tax Office has since forced Uber to change it’s policies and as of August 1, has increased it’s prices by 10% to cover these new costs. Uber is now challenging the ATO’s decision in the Federal Court.

GST for my state is not important at all because its percentage is zero. Compared to the average of all states, it’s unimportant. This can also be gauged by the fact that the average US share of GST is 11.6 percent but in my state, it’s significantly below that average. To put it simply, GST is not important at all for my state.

An Economic Reforms Priority research report issued by the Grattan Institute dissects the possible benefits of tinkering with GST. It calculates that the GST-exempt goods and services equate to about 40 per cent of consumer spending, which means the government gives up about $30 billion a year in revenue. The institute recommends the GST be applied to all of these exempt goods, thus the additional revenue could fund substantial income and corporate tax cuts that would increase economic growth. This would raise an extra $31 billion a year in revenue and add $20 billion a year to the economy or an extra $870 a year income for everyone. The tax system would be far simpler for the Australian people.

In the United States a consumption tax should one day become the most equitable and optimal way of collecting tax revenue. The current form of income taxation used in the U.S. is an incredibly complicated and costly means for generating government revenue. This tax system is renowned for its intricacy as it “has spawned a tax industry based on complexity created by our own government” (Bedard 2010). This tax code also founded the IRS which has been known to seize properties and invade extreme depths of privacy without court orders. Although, a consumption tax would not completely eliminate the need for the IRS, or a similar agency, it could certainly diminish the sweeping power currently held over individuals by this government institution.

This type of tax is charged almost on all products or services provided by organisations. For instance businesses pay VAT for all products which are needed to manufacture the products and then VAT is paid by customers if they want to buy manufactured products. VAT could be charged into three different rates which are standard rate 20%, reduced rate 5% and zero rated 0%. Standard rate is most common form of VAT and this is paid on almost all products or services unless they have been specified to reduce or zero rate. Reduced rate is depend on products it’s self and the circumstances of the sale. The most common example of reduced rate VAT are domestic fuel and power, installation of energy saving materials, sanitary hygiene goods or children’s car seats. Zero rated VAT is similar to the reduced rated VAT as is depend on

In recent times, the decline in the income tax revenue base have led to a shift in the importance of indirect consumption taxes, such as the GST. This will allow for more flexibility to finance the cost of the ageing population while at the same time funding compensation for households who are affected by the increases posed by the reformation of the tax system.

The Howard Liberal Government introduced the Goods and Services Tax (GST) in 2000, as part of the A New Tax System (ANTS). It currently exists as 10% consumption tax on most goods and services sold or consumed in Australia with notable exceptions on fresh foods, education and health. In a radio interview, former PM John Howard explained his preference for minimal exemption and the necessity to pass the bill through senate required the government to negotiate with the Australian Democrats (Reynold 2000). In its current form, the GST has bipartisan support due to its relative success. Recently the need for more revenue for States to

When the GATT made the distinction between the two taxes, value added taxes or VATs were rarely used. Since the VAT replaced the EU’s multi-stage sales tax system, the GATT classified the VAT as an indirect tax. This was a mistake on the GATT’s part as Hufbauer author of The Foreign Sales Corporation Drama: Reaching the Last Act? explains “GATT alchemy transforms a series of

I woke up one morning to prepare for school; however, I realized that the airwaves were filled with anger. Most people in my neighborhood were glued to their radio sets, waiting impatiently on the government to confirm the rumors, about its decision to replace the current sales tax rate with a new one; the Value Added Tax. Around midday, the government finally announced its decision to amend the tax system and outlined in detail various segments of the new tax policy. Under the new tax structure, taxes will be levied on every supply of goods and services made in Ghana, every importation of goods into the country and the supply of any imported service. The new tax system is meant to

S38-2 of the GST act covers the area of food. It states that a supply of food is GST-free. It is also worth noting that the food was purchased for a creditable purpose, which was to give customers something to eat whilst waiting for their appointment and also that it is “free of charge” meaning that he isn’t trying to earn revenue through selling these goods. Although both Sergio and the receptionist eat from food designated for customers it is still considered GST free as when they originally purchased the goods it would’ve came GST free. If it indeed includes GST, they can seek a deduction for it by claiming 10% of it as GST credits.

Many of the consumers think GST may have many of negative effect to them because their must to pay more than the original cost before the government introduces GST in Malaysia. This is some causes that may the consumer and supplier do not like GST much in Malaysia. First, I think the reasons why many of Malaysia citizen do not like GST is because general products prices may go up, so this will increase their daily expenditure budget. Second it will increase the load of the low -income working group in Malaysia as we know the basis salary in Malaysia is RM800. In the amount of RM 800, they have pay many of the other cost such as utility expenses, houses or room rate, vehicle fuel and other thing. So that it make they feel that this burden GST is distress them. In the same time they was worried if the government increase the GST rate from 6% to 10% to increase revenue because it is possible for the government increases GST rate to get more revenue to develop countries or to support the government burden. Next in the beginning of introducing of GST that has many problems in implementation due to the lack of real understanding of the concept among GST on the supplier and consumer and to ensure that the supplier does not take any advantage of the consumer in increase the price of their product. In addition, rumors from outside also make the Malaysia citizen feel bad to the concept of this GST without check the information is true or not and without the truly