Impak GST kepada rakyat

Initially it was proposed to be effective from 1 st January 2007. In order to improve the effectiveness of the government's financial management , Budget 2005 proposes restructuring the tax system , including reviewing the provisions of the Income Tax Act 1967. This he intended to make the tax system more efficient and capable of generating revenue.

GST will replace the current sales tax and service available. Currently the sales tax levied on goods at the point of import or manufacture . A service tax imposed on certain services , including professional , hotels and restaurants.

GST claimed as a tax system that is more comprehensive , efficient , transparent and effective . It also alleged that increase in annual tax revenue for the government. In a reaction to an accounting lecturer from UiTM opinion GST will not burden and increase revenue.

On 29 November 2009 , Second Finance Minister Datuk Ahmad Husni Hanadzlah in fact been claimed that the government will earn an annual tax of Rs 1 billion from the GST . He said a total of 143 countries have implemented the GST . In Asean only Malaysia, Brunei and Myanmar have not introduced it .

Furthermore, said the GST would reduce the corporate tax and individual income tax .

Now neighboring countries to implement the GST is Singapore , Thailand , Indonesia and the Philippines. GST rate used by countries this time is Singapore 5% , Thailand 7 % , Indonesia 10 % (referred to as value-added tax - VAT ) and the Philippines 10 % .

GST is expected to be implemented 18 months after the second reading of the bill in March next year (2010 ) . This means that the tax will take effect around August or September 2011.

What is GST ?

VAT / GST was introduced in France in 1954 by Maurice Laure , to replace a system that is highly dependent on uncertain tax based on sales for balancing the income tax system is not very effective .

138 countries now implement Value Added Taxes ( VAT ), while some countries - especially the U.S. , impose sales taxes , taxes on a level usually only retail level . In almost all countries taxes are the largest effect during or penyumabang to get the country 's second biggest .

GST or in English Goods and Services Tax is a tax on everything which goods and services are used by consumers contain tax element . That is why it is also known as consumption tax ( consumption tax ) . In other words , basically far more extensive than the Sales Tax and Service Tax is now.

GST is a consumption tax and it is based on the concept of added value. GST collected from customers to the government by business organizations that are registered with the tax authorities .

Normally, the provider or seller can register to collect GST if annual sales of the product or service being supplied exceeds a certain amount specified .

GST is included in every level of governance niaga.Jumlah sale of goods and services (also known as supply ) is the total value received by business organizations (excluding GST ) on all taxable activities .

Taxable activities include an ongoing activity . Business organization concerned shall provide ( or agree to supply ) goods or services to consumers , whether for profit or other purposes such as trade, manufacturing , professions, associations or clubs.

The sale price of supplies after taking into account the GST . Business organization can also claim a tax credit for each GST has been included in the supplies purchased for the purpose of conducting business . This tax credit known as the `` input '' tax credit .

Eventually consumers will bear the cost of the GST . However, the handing over of the GST to the authorities is the responsibility of the seller rather than the end user.

7 points on GST

1 . Dealers are required to charge GST at a rate to be determined on goods and services supplied . Collected the GST paid to the government.
2 . GST is charged on the supply of the tax, which nearly all goods and services.
3 . Dealers pay GST when purchasing goods and services. Usually they can claim back credit " input tax " to the GST paid .
4 . Credit " input tax " borne again from the GST collected.
5 . If the credit exceeds the GST charges " input tax " for a period , the dealer must remit the GST to the government. If credit " input tax " excess GST charged , traders will usually get his money back ( refund) .
6 . Eventually impact businesses charge GST but do not keep it and pay GST but get credit " input tax " .
7 . Load dupes users .

Tax -exempt supply

However , goods or services which are not taxable basic needs . In Australia , for example , goods and services that are not taxed , including basic food items ( except food available , take- back food , snacks , alcoholic and soft drinks ) , health , medicine , education and child care , utilities , certain products supplied by charitable and religious organizations , and the goods and services exported .

Implementation of GST in the country is a sensible move given that most other countries have been implementing . In addition, the government guarantees to exempt tax on goods and services intended for basic needs not burden low -income consumers while avoiding inflation. GST only applies to luxury goods or services that can be purchased by high -income consumers . In addition small businesses are also exempted from the GST .

Some mengsyaratkan if properly managed in collaboration with various stakeholders , the GST can increase revenue through higher tax compliance rate .

In addition, this system also can ensure that every business keep financial records more completely . Although the implementation of the GST system is considered challenging , uncomfortable period before implementation allows all walks of life are given knowledge .

Issues and implications of GST

After the execution had been postponed from January 1 2007 until now it turns out there are things that are not mandatory beres.Kerajaan know and believe that its implementation will not affect the well-being of the people.

Provided that Malaysia is of the opinion tingigi , GST may sound logical . In theory it is also seen close holes GST advantage of those who try to avoid paying taxes. In the Scandinavian countries the effective implementation of GST has led to social benefits in education , health care , transportation and child care .

But there are some questions that need to be considered in the context of Malaysia at this time . We describe the following :

1 . The first question , whether to introduce GST or any taxes to increase revenue ( income ) Treasury will not increase the burden on the people . The fact that no tax burden .
2 . Second , the GST if not monitored closely to be exploited and manipulated by the manufacturers , distributors and retailers to cheat ( profiteering ) .

This is where we put another KPI benchmark prime minister because he was the Finance Minister . The idea and implementation of the GST now become his sole responsibility .

1 . And third, the additional tax revenue from the GST will only benefit taxpayers and the people if spent wisely . So far the record waste prevention and prudent use of state funds by the public sector has not been sufficiently convincing.

In this uncertainty the government seems to have opened up to the private sector and civil society and private taking part to provide feedback on the implementation of the GST . For this , the government has announced the establishment of the Taxation System Revision including the Income Tax Act 1967 which consists of 8 people, 3 people from the public sector and 5 from the private sector . Timbala Kementeri Secretary General of the Tax Division of Finance will chair this panel .

1 . Further issue is the extent income rise, individuals or companies can be saved when reduced income tax in the GST tax regime ? Another concern which is when the company took the opportunity to raise the prices of goods and services due to this initial announcement , as happens in some country.

Now the wait for further announcements to prepare meohon license to collect GST from the supplier . manufacturers , wholesalers, retailers and consumers.

1 . If viewed from an angle of the GST tax on consumption appeared to more fairly. This is because there are several categories in a society that does not allow the tax .

But the other question is how the government to create a more simple mechanism when GST is implemented . GST system has a complicated calculation mechanism if the operators do not understand it very well .

So far very few operators , especially small and medium enterprises (SME ) to understand the implications and how to operate their business based on the GST system.

If the European system as implemented GST in Malaysia goals to be achieved not will work. The most important concept is simple and smooth .

Thus the various parties described the postponement of the implementation of the GST as appropriate to ensure the readiness of the business community in this country face itu.Masa practice longer needed for the targeted groups to prepare and understand the true concept of GST and its impact on the field.

Government finally admits delays need to make room for the government to update the procedures and actions to be taken in parallel implementation of the GST , while the company has time to complete preparations such as determining the best system in terms of keeping receipts and so on . For large businesses , the storage system of various documents and receipts may be managed by professionals, because more needs to be handled.

1 . The reality is that the GST is a very complex system . If the same ability is not felt by all parties that this system would be impaired .

Assumed as a result of the GST increase government revenue mechanism to achieve deficit reduction targets in the annual budget will fail to be achieved . So far the government has presented eight consecutive years and each time the budget deficit target of reducing the deficit than it failed to achieve even GNP deficit widened .

Until these are not even a clear roadmap based on intervals that can be addressed by the government to achieve a balanced budget . So far it seems only the state of Kelantan , Selangor and Penang only achieve a balanced budget .

1 . A further question is to what extent the GST can contribute to the reduction of the budget deficit . That's why some have suggested other Revision Panel Taxation System , the parliament itself should establish an independent committee of the Tax Reform . This is important because ultimately Parliament is the one who will approve or reject any changes in the tax system . This Committee may provide input through their own research to be considered by parliament .
2 . One other implication , against the system of direct taxation (direct tax ) to corporate bodies and individuals , is that GST is also seen as a regressive tax system , namely the higher the individual or corporate income lower part of the income tax passed to pay . Instead lower income the greater the share of income that needs to be passed to the payment of taxes. This system means more pressure on the poor and low income . Guarantee that low -income earners will not loaded yet convinced . GST mechanism yet to be announced very clearly outlines the fundamental impact on low -income groups are very sensitive to the price of goods and services . What was worried about the burden will increase for the poor , the competitiveness of small and medium enterprises will be eroded.

A writer named Andrew Fan letter published in the NST very clearly explain this issue as follows :

" Let me use his illustrations :

An individual earns RM35, 000 a year ( RM2 , 916 a month ) . His income tax for that year is RM1 , 526 a year . That means his effective disposable income is RM33 , 474 .

Assume GST of five per cent is applied . Everything this individual buys will be more expensive by five per cent , causing his real disposable income to Decline to RM31 , 880 ( RM33 , 474 Divided by 105 per cent) .

This means the GST in the cost to the individual in real terms is RM1 , 595 .

Given this scenario for an individual , the government 's suggestion to lower the effective income tax rate to compensate for the GST rings hollow . Even if income tax rates dropped to zero , it would not cover the GST cost. "

Based on this calculation will be liable for GST on all goods and services that benefit them middle because it buying and consequently reducing its affect quality of life . Pergiraan he will also be more severe for the individual after rebate factors are accounted for , income tax cuts and lower tax rates for those with lower incomes . As a result of the Income gap will grow wider.

Only 15 % of the workforce in this country is taxed . Thus the income tax reduction dini'mati by upper income and low -income non- help groups .

1 . GST is also not good for SMEs . Most SMEs will lose and only a little profit at the beginning of operation. So SMEs are not subject to corporate tax or pay lower corporate taxes when it began operating . But the GST , will have an impact on small operators starting the first day of operation .. From the very first day it had menggenakan customers by charging more for goods and services. As a result the demand for goods or services will be reduced.
2 . Government policies like the GST also dilikita to hang on the corporations, or to continue "business friendly " . But this strategy is seen transferring the tax burden from the rich layers of ordinary people. This strategy is being implemented - 4 percent to 26 percent . As stated in the speech MP Sg . Snail , Dr . Jeyakumar Devaraj , in Parliament recently , he quotes from the m / s 9 Biznews on 29/10/09 .

" The Goods and Services Tax will stabilise the government 's Finances in the long run says Ernest & Young . XX , one of its partners Suggested that's the strategy would be to start low and pull up the rate every few years . As in Most Countries with the GST in place, a reduction in corporate and personal tax said he will follow suit . "

The proposed GST empowers the Minister of Finance to determine the tax rate discretion.

1 . GST is also seen as a result of a sharp rise in inflation when prices are going up due to increased business costs . With the advent of " input tax" and " output tax" imposed on all goods and services production chain , the higher the price to be paid by the consumer. Any reduction in the income tax can not cope with rising prices of goods and services .
2 . Although the GST could cost up to Rs 1.4 billion as export tax reduced to 4 % from 10 % and tax professionals do not need to be paid , but exporters and businessmen will transfer the tax to consumers that would result in a loss for those who felt the medium and low .
3 . We feel that the GST could trigger a so-called hidden economic activities ( underground economy) . This is because the GST would create an administrative burden on the government and employers . The question is whether there is a tax system that the government can get the same revenue but would be more fair to consumers and small businesses , there is no cause for concern to small employers and encourage the federal and state governments to cooperate and harmonize tax policies .

Generally estimated 5-20 % in any of the activities will be an economic economi not disclosed. GST can mecetuskan more of these activities .

A tax system is efficient when it does not interfere with any decisions and economic behavior . A tax system should be established to help overcome the economic activity is hidden.

Some business groups will perform economic activities such as the GST burden and very complex to manage. If GST may result in this case , the government would lose revenue higher than what it should be.

Experience rich country like Canada even have found increased management costs when GST is implemented . In 1991-92 he was forced to spend $ 486 million and require a staff of 4,400 people to manage GST . If public or private costs for every Rs 1 mixed to manage GST , it will not achieve the objective as claimed . Cost of time spent in the management of GST is expected to be higher than normal .

Australia's experience with GST

According to a country report notes with high per capita even mengelami criticism of the GST as follows :

" Critics have argued that's the GST is a tax regres , Selatan, has a more pronounced effect on lower income earners , meaning a that's the tax consumes are solely for Higher proportion of income , compared to Those earning large incomes . Peter Costello , the acting Federal Treasurer who introduced the GST , that's counters , due to the Corresponding Reductions in personal income taxes , state banking Taxes, wholesales federal fuel tax and missing were implemented Taxes that's When the GST was introduced , people were paying no Effectively extra tax .

The months preceding the GST became active BEFORE saw a spike in consumption as Consumers rushed to purchase goods for hire that's perceived would be substantially more expensive with the GST . Once the tax Came into effect , consumer consumption and economic growth that's Standard and Poor Declined by the first fiscal quarter of 2001 , the Australian economy Recorded negative economic growth for the first time in more than 10 years . Consumption returned to normal soon however . The Government was criticised by small business owners over the Increased administrative Submitting Responsibilities of Business Activity Statements on a Quarterly basis to the Australian Taxation Office .

A study commissioned by the Curtin University of Technology , Perth in 2000 , that's argued the introduction of the GST would negatively impact the real estate market as it would add up to 8 percent to the cost of new homes are and Reduce of demand by about 12 percent . [ 10 ] The real estate market returned to boom between 2002 and 2004 YogyakartaT Increased property prices and demand dramatically , particularly in Sydney and Melbourne . Perth During the 2004-2006 period has also witnessed a sharp climb in real estate prices and demand. "

Sources : http://encyclopedia.laborlawtalk.com/Value_added_tax

CONCLUSION

GST if not offset by the higher costs will be borne in managing it would make the tax system is a burden not only to people but also to the government. More important is when the alleged increase in revenue to be derived by the government was not coordinated with measures curbing waste and fraud , will make the GST is not a tax system that is beneficial even spark greater economic realistic .

That certainly introduce reform the existing tax system sekatang not easy . Tax reform should not only with GST or any name . The final result of the price implications of socio-economic and political high to pay.