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Advantages And Disadvantages Of Gst In Malaysia

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ADVANTAGES OF GST Goods and service tax (GST) is a good tax system that has been applied in Malaysia and some country. There are some advantage and give the good effect to the society and country. It is more efficient than the other tax which sales and service tax (SST). The first advantage if the government implement the GST is it can reduce or abolish the double taxation that has been introduced by the current SST. With this benefit the consumer will enjoy to pay the fair price to the goods and services compare when they implement the SST. This figure 1.0 will show how SST and GST will be implemented and how both of the tax will give benefit to the consumer. Figure 1.0 On this table show that the tax under SST will give the higher amount …show more content…

The owner will not bare the loss if the customers demand is decrease but they can attract their customer if the customers understand how the GST has been implemented. This is because they can cut down their cost in doing business when they can claim GST for their business. For instance, previous current taxation system, they are not allowed to claim the tax such as service tax on telecommunication, tax on indirect inputs which office equipment and furniture. All the taxes are included into the price of the goods have been sold. So, it cause can increase the cost of doing business. But with GST system tax, anything GST that has to bear it on acquisition can be claim and it is not a cost to the business. With GST, the Malaysian export will become more efficient and can compete in the global market which there is no GST will levied on exported goods and services. It can make the export sector become stronger and then will contribute to the growth of the country …show more content…

We are confident with the formation of the Monitoring Committee of GST that has been developed by the government to ensure that GST will implement smoothly and effectively. Government also from time to time will assess the social impact of the people affected by the implementation of the GST. Consumers should understand that GST are not levied on the basic food, public transport, tolls, purchase and rental of houses, health services and education, the issuance of passports and licences, electricity consumption for the first 200 units for the domestic consumers and various basic goods and other services. So, GST can increase the national flow of income. The Central Government is expected to generate more revenue with the implementation of GST. When the government income increases, it can be used for the development and for the public. And there also can help more poor people in Malaysia. The GST also allows the government to reduce the corporate and income taxes. The other advantage is for the local traders can get the profit when the import of the goods will be taxable. This is because when government incurred the tax to the import goods will encourage the consumer to choose the local goods. It is important of the trading strategy that has been used by the several countries in this world to take care of the local

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