The year 2009 a realistic and dynamic time to implement the goods and service tax (GST) as people will be more prepared, says a tax expert.The tax payer version
“I am more inclined to say 2009 if you looking at our current economic situation. We need to give people sufficient time to get prepared, at least between 12 and 18 months,” PricewaterhouseCoopers’ tax services executive director Steve Chia said today.
The year 2009 is a realistic to implement the goods and service tax (GST) as people will have voted the Barisan back into power.Do you know that something like only 1.2million out of the 26million Malaysians pay taxes?
“I am more inclined to say 2009 if you looking at our current political situation. BN needs to give the voters sufficient feel-good illusion to ensure a win in the current General Elections” blogosphere taxpayer Lulu Whatalulu said today.
With the introduction of GST, ALL Malaysians will have the opportunity to pay taxes. To put it ala AirAsia, "Now everyone can pay."
Assuming that GST is charged at 5%,
Your clerk who earns about RM1,000 who used to earn too little to pay taxes will have to pay 5% tax on everything he buys.
Your daughter who is still schooling with have the opportunity to pay this 5% tax on everything she buys.
Your parents who spent all their lifes paying taxes will have to pay this 5% for everything they buy.
We dont know if GST will come with a 5% drop in income tax. Lulu, the tax payer, wouldnt bet on it, considering the looming end of petrol money and how well prepared we are to face it.
But Lulu does think that consumption will rise in Y2008 as there will be "panic buy" to stock up before GST is imposed.
On Lulu's shopping list - probably a new car.