Gst Advantage

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In a nut shell, it can be concluded that GST actually does more benefits to the Malaysia economy which subsequently enhance the well-being of the Malaysian citizen. Firstly, GST is an important source of revenue for government, especially for countries such as Singapore, where the personal income tax and corporate tax are low. With huge amount of GST being collected, Malaysia government can manage the country more effectively, which is obviously beneficial to both individual and the society. Also the government can use the GST to improve the infrastructures in Malaysia. For instance, the government can use the amount of GST collected to build infrastructures such as hospitals and improve the roads system in Malaysia. Hence, government doesn’t need to borrow money from other countries to fund for these upgrades and developments, hence…show more content…
The reduction in the business costs will cause local products and services more competitive in the domestic and international markets. In addition, the GST is expected to improve tax compliance and is easier to administer due to its self-policing feature. With GST, bureaucracy in the government’s delivery system will be significantly reduced with Malaysia economy improved. However, GST also has its disadvantages as well. The GST penalizes every Malaysian citizen equally regardless of both the rich and the poor. Unlike the income tax or corporate tax, GST is hardly progressive. It makes necessities such as food, transport, houses, clothing and medical treatment more expensive to both the rich and the poor. However, GST can be progressive if the government taxes more on luxuries and less on necessities and Malaysia government can construct strong transfer or welfare system to assist those financially needy

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