In our previous post titled “What is GST?“, (Goods & Services Tax) Accounting KL Management Services spoke about the implementation of GST and its definition. In this edition, we’re discussing on the pros and cons of the Malaysian government implementing GST in Malaysia.
There were many responses when the Malaysian government first announced the Financial Budget for Malaysia, year 2010 (read Malaysia’s Budget 2010 highlights), both good and bad. But when they were undecided about GST, it sparked more conversation on whether it’ll benefit the Rakyat, or further threaten poorer communities in Malaysia.
What goods GST covers
As proposed by our dear government, GST covers all types of goods & services sold to Malaysian & non-Malaysian residents (therefore consumers) except for a common commodities such as rice, flour & sugar.
This goes to mean: Whenever you walk into your favorite hypermarket with the family to get some groceries in the future, you will be charged additional ~% (the proposed additional 4%) on top of your bill except for certain controlled items.
Further, Malaysia’s main revenue shouldn’t just live off petroleum. In other words, we shouldn’t put all eggs in one basket because petroleum revenues have risks of its own, seeing that it’s a natural resource.
What reason did they give? More funds for development and expenses.
How much would they probably get? RM1 billion (RM1,000,000,000) per annum in estimated rounded-up revenue.
