GST and you.

[Henry T]

GST affects all of us. Please contribute to this thread any information or questions you might have.

I'll start.

1) GST will be collected by the Royal Malaysian Customs and not by IRB, effective 1 April 2015.

2) All businesses with taxable purchases (not sales) exceeding RM500,000 per annum will have to register with the Customs Dept by 31/12/2014.
You can go to the Customs website to register online or download the form, fill it up and send by mail.

3) From the form which I have downloaded I notice there are four categories of goods i.e. Standard rated supply, Export supplies, Local zero-rated supplies and Exempt supplies. Those in business will have to find out which category your goods/products fall into. What are local zero-rated supplies? What items are exempted?

4) There are vendors selling GST compliant accounting software. Businesses definitely need some kind of new or updated accounting software.

[bslee]

Cut down on spending where able, earn more to keep up! Deal with it to counter paying more tax.

[chkoid]

Any GST in Langkawi / Labuan ? otherwise business will be good there ...

Any reduce in Personal Income Tax Rate ?

Inflation + GST , salary earner :

[LMei]

I just registered my daughter for kindy next year. And I found out they have increased their price in preparation for the GST next year. Sigh.

[Naka]

How Malaysians Pay Bills sum it up:-

https://www.youtube.com/watch?featur...&v=F80idcUPmbk

[jacksonlim]

I just registered my daughter for kindy next year. And I found out they have increased their price in preparation for the GST next year. Sigh.

This is the part I don't understand, how the shop owner/seller increase their prices "to prepare" for GST? What is there to prepare? It has not been implemented yet!

[Henry T]

GST is a tax businesses collect on behalf of the Government. Output GST (the 6% on your selling price) - Input GST (the 6% on your buying price) = Amount they remit to Customs. They are just collection agents. The cost increase is just the GST compliant accounting software (one off) and administrative. It shouldn't be a reason to increase prices, but sadly, many people are taking advantage.

With the GST the 10% sales tax should be removed. Otherwise people will be paying one tax on another tax. Import and excise duty is another matter.

[DennisWng]

Henry, you are a learned man and I salute you. What is the difference between sales tax and GST in that what products are affected with each tax? Can you give me some examples? What are some popular products that are affected by GST that are not affected by sales tax?

[bslee]

With the GST the 10% sales tax should be removed. Otherwise people will be paying one tax on another tax. Import and excise duty is another matter.

The import rate of goods (personal imports especially) vary with import and excise duties and nearly all have current 5-10% sales tax. I just asked my accountant buddy, customs must also reduce to 6% with that effect. Unless they see there's going to be revenue loss, they may play around and make you incur other duty just to make up the "loss". They can play with you on that..and its not to your benefit if that happen.

Examples can be found here: http://tariff.customs.gov.my/

[Henry T]

Henry, you are a learned man and I salute you. What is the difference between sales tax and GST in that what products are affected with each tax? Can you give me some examples? What are some popular products that are affected by GST that are not affected by sales tax?

No, I am far from learned but still learning.

Whatever name they call it it is still tax and income for the Treasury.

Sales tax is levied at the import or manufacture stage. Practically everything except those exempted. The Malaysian Tariff Code book or the Customs website is a good source of information. The current rate is 10%.

The 6% GST is a consumption tax on the selling price. It may be 6% the consumer is paying but it is on a higher amount. Everyone is a consumer. So the tax net is cast wider. If I am the Gomen I will also implement GST to maximize revenue. So, with the implementation of GST you will also have to pay 6% on the haircut at the unisex salon.

I am also interested to find out the list of exempted items but I believe the Gomen is still working on it. I am guessing it will be essential items like rice, flour, sugar, cooking oil and fuel.

[Henry T]

The import rate of goods (personal imports especially) vary with import and excise duties and nearly all have current 10% sales tax. I just asked my accountant buddy, customs must also reduce to 6% with that effect.

That's the input GST. With this there should not be the 10% sales tax anymore.

Like I said, import and excise duty is another matter. The rate should also be reduced with the implementation of GST.

IMO, with GST the whole country can even be a free port but the rate will have to be increased to say, 25%. Zero import & excise duty and sales tax. Just pay 25% on everything you buy or consume. Of course you still have to pay income tax. The price to pay for this is your local industries will be killed by exports from manufacturing powerhouses like China, India, Korea, Japan, Taiwan and Vietnam. In this sense taxes may be revenue to the Gomen but it is also to protect local industries. All this WTO, FTAs and TPPA only work to the advantage of the big boys.

[Henry T]

Was in Taipan to bank in cheques. Bought some pau. Well, what do you know. The price increase by 20 sen each. Wtf?

At least the seller didn't use GST as an excuse.

[bslee]

Well, what do you know. The price increase by 20 sen each. Wtf?
At least the seller didn't use GST as an excuse.

I easily assume they don't give a S about GST.. they raise prices as and when they see fit or at the slightest excuse...you buy you kena..willing seller willing buyer. Everyone is out to earn more to keep up..and you pay more of course...thats how things work around here.
The trouble is people keep buying expensive or not.. what if a lot of people suddenly stop buying..see whether they dare to increase price or not? Me?.. If I find out something is increased in price (if price isn't displayed), I've the audacity to return the product and not buy. Matter of principle. Still believe your 1PM high income lonsense?.. Already said its HIGH EXPENDITURE, not high income..100 out of 100 will agree with me instantly.

[Naka]

It is always good to check prices of goods you want to buy.

For example, a Blackmores Glucosamine Sulfate 1500 is selling at $59/= each in a pharmacy while the next pharmacy only sell at $37.99

Just blame yourself if you pay more

[bslee]

It is always good to check prices of goods you want to buy.

Places like coffee shops, eateries, hawkers may not display their prices to be noticed easily and most customers easily take for granted nothing have changed, BUT..kena when you suddenly realise that the vendor have "silently" increased prices and people just cough out to pay because its already consumed, reluctant or not...and it goes on probably every minute of the day somewhere in Klang Valley..life goes on..they profit, you grumble at most. When people are hungry, its usually no questions asked, eat 1st, grumble later if any. For any vendor, they need scores of customers with this attitude everyday and they profit, moroever don't give a S what you think.