One of my clients came across an article about the GST (Goods and Services Tax) that has published by the Oriental Daily News of Dec 05 and he was not fully comprehended with the illustration as shown above.After seeing the illustration, I showed him a humorous remark and pointed out that there were 2 printing mistakes on the illustration. The last field of "tax on output" should be written as RM5 instead of RM2; the total GST collected by the government for RM5 should be placed under the last column of "net tax payable" instead of "tax on input" column.
FYI, the simple calculation base on the corrected illustration can be determined as:Raw M'rial Supplier charges Manufacturer RM0.50 and pay it to Government;
Manufacturer charges Wholesaler RM2.50 and pay Government RM2.50-RM0.50(input tax);
Wholesaler charges Retailer RM3.50 and pay Government RM3.50-RM2.50(input tax);
Retailer charges Consumer RM5.00 and pay Government RM5.00-RM3.5(input tax);
at the end, the selling price to Consumer becomes RM100+RM5 sales tax.
Malaysian GST is expected to be implemented sometime in March or April 2007. With a broader base for goods and services being subject to GST, the revenue for the government is expected to be higher and the consumers are the final taxpayers.
Because of the GST, the inflation rate is likely to be heightened sometime in the 3rd quarter of 2006. It is due to the preexistence of GST rehearsal, importers and traders are likely to pre-align prices of their goods for the advance advantage.
2 comments:
To put it simple, GST is a broad-base tax or GASAK SEMUA TERUK-TERUK.
I am confident this is the best translation as it is quite air-tight sealing off tax leakage.
When the day comes, you will see everybody asks for receipts, invoices and bills for preparing deduction.
Inflation is another phenomena thought it could be short term.
It also encourages people to save. Auntie and uncle would think to DIY instead of buying.
I wish our government would initiate some activities to neutralize the impact.
God bless us if the oil price would drop. I am keeping my fingers crossed as I have a feeling our pump price may increase to RM 2.6 a litre.
You tell me how to retire? Some one told me the worst scenario is wang habis but kita masih tak mati.
Yeah, good sense loooong. In here retire mean redundant tired. It means that you still have to get tired after retiring age!
lying sick for 2 day. Now I'm having a daydream if old folks like us would be handicapped with a special green card called "old man nil tax card", then only the retirement will make sense.
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