Disadvantages Of Gst In Malaysia

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GROUP ASSIGNMENT ECO415 TITLE: MARKET EQUILIBRIUM AND PRICE CONTROLS Lecturer: Mdm. Tan Nyuk Chin Submission date: Week 12th Group members: Shazanna Nur Atiqah Binti Mulkan (2014710021) Shakina Vedora Yafle (2014743357) Sitti Norsarina Binti Amirullah (2014982055) Lizawati Saran Baru (2014324799) Group: AS2011A1 a) Many arguments arise with the implementation of Goods and Services Tax (GST) in Malaysia recently. Discuss the advantages and disadvantages of this policy towards Malaysian consumers. Advantages • Fairer pricing Under GST, the consumers will pay the same amount of tax which is 6% to certain particular goods and services. GST will eliminate the double taxation under SST. This means consumer will pay…show more content…
(Dr.Paul.M.Johnson). The government can either control the prices of goods and services by establishing price ceiling, the maximum price or price floor which is the minimum price allowed. The price of goods and services need to be control so that there are no individuals in the market will take advantages on others for profiteering. In Laws of Malaysia Act 121, the Malaysian’s government has enacted the Price Control Act 1946 which is aiming two main purposes; to provide the control of prices and to require price tagging and labeling of goods in the market. If a seller failed to follow the act, he or she could be given the penalties as stated in section (22) of the Price Control Act 1946. a. In section 22 (1) stated that any person who convicted to the offence will be given fine not exceeding RM15, 000 or imprisonment not exceeding two years or both. For his second or subsequences offence will be fined not more than RM25, 000 or not more than five years imprisonment or both. b. In section 22 (2) stated that any person in body corporate that commits this act offence will be fined not exceeding RM25, 000 and not exceeding RM50, 000 fine for his second or subsequent

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