There has been a steady increase in the rate of service tax. From a mere 5 percent, service tax is now levied on specified taxable services at the rate of 12 percent of the gross value of taxable services. However, on account of the imposition of education cess of 3 percent, the effective rate of service tax is at 12.36
Source: Royal Malaysian Customs Department, 2013 The standard rate of GST is currently fully charged on the investors. Hence, the investors are required to pay more for the same amount of investment after the implementation of GST. The example of the difference on cost is shown in Table 1 with an initial investment of RM 10,000 in a unit trust. Table 1: Difference on cost before and after the implementation of GST. Without GST With GST Upfront Charge (5%) = RM 10,000 x 5% = RM
The merger of service tax in GST helps to ensure not only a more comprehensive input tax credit but also relieves the tax on exports. The State GST will expand the base of the prevailing VAT to include services and the tax will be simplified by merging a number of other taxes such as motor vehicles tax, entertainment tax, goods and passengers’ tax, electricity duty and entry taxes including those levied in lieu of octroi referring to the local taxes on the entry of goods into a municipal area for consumption, use or sale. A significant gain in minimizing distortions and reducing compliance cost for taxpayers can be brought about through the harmonization of tax rates and administration across the
In 1954, Goods and Services Tax (GST) was first adopted by France Government to replace their old tax system which were defective and ineffectiveness on collecting taxes. By general, GST is proposed to be a comprehensive indirect tax levy on the manufacturers, the sales and consumption of goods. It was also known to be Value Added Tax (VAT) due to its multi-stage consumption tax of goods and services, although it is charged on local consumption by multi staging, eventually is borne by the end consumers. The register vendors able to claim it back from the respective government. In the late 1980s, the Government of Canada was the second country to adopt GST by eliminating their old tax system Manufacturer’s Sale Tax (MST).
It now appears as though this might become reality as GST, the replacement of Sale and Service Tax (SST) was implemented with a standard rate of 6% and was effective from 1st April 2015. The implementation of GST aims to strengthen tax compliance, through simpler and more transparent tax system to increase the efficiency of current taxation system. On top of that, government is looking ways to rein back national budget deficit by diversifying its source of income and less dependence on oil revenue. GST would have profound impact on low and middle income households than high income households. For families in lowest earning group, their monthly income are RM605 and contribute 2.62% of GSTI.
In 2013, Malaysia was the eighth largest furniture exporter in the world and ranked third in Asia with the products exported to more than 180 countries around the world. The success of Malaysia’s furniture industry has always been associated with the abundance of natural resources—rubberwood. Realising this, the Malaysian government has set an annual growth rate of 6.5 percent for the furniture industry. This growth percentage will eventually allow the industry to achieve an export value of RM53 billion (US$14.93 billion) by the year 2020 as outlined in the National Timber Industry Policy. Economic downturn proves to be challenging to the industry.
There are more registered vehicles in Malaysia today and large number of private vehicles travelling into the city centers pressure for road users, especially at peak hours. Public transport also has a significant impact towards the environment as air, sound and
The rapid rate of development in Malaysia has made the extent of deforestation by leaps and bounds. In Malaysia, the issue of deforestation cause by certain factors are at an alarming stage. It should has been given great attention by the government. To address these impacts, implementation of law in Malaysia must be a priority. However, the Malaysian constitution does not have an definite provision for the protection or conservation of the environment.