The Ministry of Finance Malaysia announced its latest news on October 13, 2010 that the implementation of Goods and Services Tax (GST) has been postponed. The press release is short and sweet - contains only 3 paragraphs.
The postponement of GST implementation is the second time that I know of. The first time was announced in year 2006 (the GST was then supposed to be implemented on Jan 1, 2007).
There is no indication when the GST will be revived. This announcement is just 2 days short of the tabling of the 2011 Budget on October 15, 2010.
The only idication that the GST may be brought back in the (immediate) future is the 2nd paragraph that says :
"This (the postponement) is to enable the government to engage inclusively with all segments of rakyat pertaining to the GST. The Government will take into account the interest and welfare of the society to ensure the implementation of GST is well received."
The 3rd paragraph reads:
"Notwithstanding the postponement, the Government recognises the importance of GST in ensuring a strong and sustainable fiscal position to support the long term economic growth"
The GST was scheduled to be implemented in middle of 2011.
My one sen worth
Most countries take 4-5 years to prepare for GST implementation. Malaysia could have taken the time from the first postponement in 2006 to undertake such a study. Hopefully, this time Malaysia will take the time from today to conduct the required studies, so that when (and if) the GST is announced again, there will not be any flip-flop decisions.
Read the press release in its original form here
Aug 8, 2010
MYOB Singapore version is GST compliant
If you are looking for a GST-ready software to prepare yourselves for the introduction of GST in Malaysia, then you should consider MYOB software.
The reason being, their Singapore version of MYOB software (MYOB Premier v12.3, and MYOB Premier Plus v 12.3) are already compliant with the GST rulings under Singapore Inland Revenue Authority of Singapore (IRAS). See the IRAS website for the confirmation that MYOB is GST-compliant.
This means that the MYOB Singapore software is complaint with the requirements set out in the Singapore IRAS e-Tax Guide. In addition, the MYOB Singapore version has additional GST reports to help the users complete the Singapore GST submission through e-filing.
If the Malaysian GST system is modelled after Singapore (or Australia and New Zealand) , then it will be a 'piece of cake' for the Malaysian MYOB software version to be transformed from GST-ready to GST-compliant. (Note : MYOB software is a serious software player in Australia, New Zealand and Singapore)
The MYOB version that is being currently distributed in Malaysia is Premier v12.2, which is 1 version behind the Singapore version.
In order for the MYOB software (Malaysian version) to be GST compliant, it will need to wait for the Malaysian Government to come out with its own set of GST guidelines, and e-filing reports, and inlcude the reports in the MYOB software.
This GST logo can be found on official MYOB documents.
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The reason being, their Singapore version of MYOB software (MYOB Premier v12.3, and MYOB Premier Plus v 12.3) are already compliant with the GST rulings under Singapore Inland Revenue Authority of Singapore (IRAS). See the IRAS website for the confirmation that MYOB is GST-compliant.
This means that the MYOB Singapore software is complaint with the requirements set out in the Singapore IRAS e-Tax Guide. In addition, the MYOB Singapore version has additional GST reports to help the users complete the Singapore GST submission through e-filing.
If the Malaysian GST system is modelled after Singapore (or Australia and New Zealand) , then it will be a 'piece of cake' for the Malaysian MYOB software version to be transformed from GST-ready to GST-compliant. (Note : MYOB software is a serious software player in Australia, New Zealand and Singapore)
The MYOB version that is being currently distributed in Malaysia is Premier v12.2, which is 1 version behind the Singapore version.
In order for the MYOB software (Malaysian version) to be GST compliant, it will need to wait for the Malaysian Government to come out with its own set of GST guidelines, and e-filing reports, and inlcude the reports in the MYOB software.
This GST logo can be found on official MYOB documents.
.jpg)
Aug 6, 2010
Tourist refund scheme to be introduced
In a GST environment, tourists who have been subjected to GST on their purchases while holidaying in Malaysia are entitled to a refund of the GST paid.
The Malaysian goverment is going to introduce a tourist refund scheme, and details are being worked out on the appointment of tourist refund agents, approved outlets, and quantum of refund.
The Malaysian goverment is going to introduce a tourist refund scheme, and details are being worked out on the appointment of tourist refund agents, approved outlets, and quantum of refund.
Public relations firm to promote GST in Malaysia
The Malaysian Government will appoint a public relations firm to help it conduct more programmes to increase awareness of GST in Malaysia.
In the next few months, we will hear a jingle about GST. There will also be more roadshows, television talks, and billboards on the impending GST introduction.
So far, there have been 2,000 awareness programmes organised by the Ministry of Finance, SME Corp, and Federation of Malaysian Manufacturers (FMM).
In the next few months, we will hear a jingle about GST. There will also be more roadshows, television talks, and billboards on the impending GST introduction.
So far, there have been 2,000 awareness programmes organised by the Ministry of Finance, SME Corp, and Federation of Malaysian Manufacturers (FMM).
Jul 18, 2010
Are Malaysians ready for GST in 2011? No.
Are Malaysians, in general, ready for the Goods & Services Tax (or otherwise known as GST) in 2011?
No, according to the ACCCIM - Associated Chinese Chambers of Commerce & Industry of Malaysia.
The ACCCIM 2010 SME's Survey sent out a questionnaire to 2000 SME's but only 1250 returned their questionnaire paper.
Out of these, 33% said their business were not prepared for the GST implementation due to a lack of information from the government.
About 80% of the respondents said their computer systems were not ready to cater to the GST system.
What can we infer from the findings?
1. The Malaysian Government must strenghten its efforts to educate the public so that they will have a positive view of the GST
2. The government should draw up a clear timetable and give the public sufficient time to prepare for GST implementation
3. The Government should consider giving out incentives to encourage companies to switch to GST systems. Note: The Singapore government gave out a rebate of SGD 5,000 for companies that bought new software and hardware systems that are GST compliant.
4. In the meantime, all companies concerned should take the initiative to source for new computer systems that can track the GST payable, and GST collectible, so that they will not lose out when the GST is introduced.
My one sen worth
The ACCCIM said that 2012 is the right time to introduce GST as 24 months time frame is necessary to get the public to be ready for GST. However, it is like setting a moving target. Come 2012, the companies will also not be ready. The GST idea has been mooted since 2005, and was supposed to be introduced on Jan 1, 2007. And still, people are not ready.
I think the government should bite the bullet, and take the strong commitment to explain the exact workings of GST, and how it will affect the consumers. Do not skirt around the issue, and say that it will be good for the country's economy. Explain that only a handful of Malaysians pay tax, and that is not enough to maintain the country's development. Also, be transparent, and explain exactly which projects are going to be funded by tax collected, and so we can make the Government accountable .
Read the articles in Bernama, and the Star
Read the actual report REPORT OF ACCCIM 2010 SMEs SURVEY as published on the ACCCIM website
No, according to the ACCCIM - Associated Chinese Chambers of Commerce & Industry of Malaysia.
The ACCCIM 2010 SME's Survey sent out a questionnaire to 2000 SME's but only 1250 returned their questionnaire paper.
Out of these, 33% said their business were not prepared for the GST implementation due to a lack of information from the government.
About 80% of the respondents said their computer systems were not ready to cater to the GST system.
What can we infer from the findings?
1. The Malaysian Government must strenghten its efforts to educate the public so that they will have a positive view of the GST
2. The government should draw up a clear timetable and give the public sufficient time to prepare for GST implementation
3. The Government should consider giving out incentives to encourage companies to switch to GST systems. Note: The Singapore government gave out a rebate of SGD 5,000 for companies that bought new software and hardware systems that are GST compliant.
4. In the meantime, all companies concerned should take the initiative to source for new computer systems that can track the GST payable, and GST collectible, so that they will not lose out when the GST is introduced.
My one sen worth
The ACCCIM said that 2012 is the right time to introduce GST as 24 months time frame is necessary to get the public to be ready for GST. However, it is like setting a moving target. Come 2012, the companies will also not be ready. The GST idea has been mooted since 2005, and was supposed to be introduced on Jan 1, 2007. And still, people are not ready.
I think the government should bite the bullet, and take the strong commitment to explain the exact workings of GST, and how it will affect the consumers. Do not skirt around the issue, and say that it will be good for the country's economy. Explain that only a handful of Malaysians pay tax, and that is not enough to maintain the country's development. Also, be transparent, and explain exactly which projects are going to be funded by tax collected, and so we can make the Government accountable .
Read the articles in Bernama, and the Star
Read the actual report REPORT OF ACCCIM 2010 SMEs SURVEY as published on the ACCCIM website
Jul 14, 2010
Podcast : Implementing GST in Malaysia and Its Effects on SMEs
GST - the dreaded three letter word. What are the repercussions of GST for every Malaysian, and how best to prepare for impending GST implementation in Malaysia.
Listen to the podcast on the BFM 89.9 Business radion station on the topic 'Implementing GST in Malaysia and Its Effects on SMEs" by Mr Paul Jennings, MD of MYOB Malaysia.
Listen to the podcast on the BFM 89.9 Business radion station on the topic 'Implementing GST in Malaysia and Its Effects on SMEs" by Mr Paul Jennings, MD of MYOB Malaysia.
Jul 13, 2010
GST to cost the Malaysian Government Rm222 million
The Malaysian Government will need to fork out an estimated initial sum of Rm222 million to ensure the smoth and effective implementation of GST system in Malaysia.
The amount consists of Rm 139 million for developing the GST computerisation system, and Rm 83 million for the Malaysian Customs Department to implement the system.
The annual maintenance cost is estimated to cost Rm 8.5 million.
Statement from the Finance Minister in a written reply to a Member of Parliment
My one sen worth
By implementing the GST system, the Government is expected to generate Rm 1 billion in additional income.
The cost seems reasonable, judging by the tax amount to be collected, and it appears that the government can recoup its investment in 3 months after the GST is implemented.
I just hope the new system will be thoroughly tested before it is launched.
The amount consists of Rm 139 million for developing the GST computerisation system, and Rm 83 million for the Malaysian Customs Department to implement the system.
The annual maintenance cost is estimated to cost Rm 8.5 million.
Statement from the Finance Minister in a written reply to a Member of Parliment
My one sen worth
By implementing the GST system, the Government is expected to generate Rm 1 billion in additional income.
The cost seems reasonable, judging by the tax amount to be collected, and it appears that the government can recoup its investment in 3 months after the GST is implemented.
I just hope the new system will be thoroughly tested before it is launched.
Jun 30, 2010
GST workshop : Insight to GST
MYOB Malaysia office is kick-starting a series of workshops to teach Malaysian public, and existing MYOB users, on the impact of GST on your business, and why your business needs to be prepared.
Click for latest schedule of workshops.
Who and what is MYOB?
MYOB is a trademark of MYOB Pte Ltd, Australia. MYOB the Company is the publisher of a business management software, which is called MYOB Accounting software. The MYOB software is a great tool to use in your business, any kind of business, and suitable for most Malaysian SME's. The software takes care of your invoicing to customers, updates your stock listing when goods are received or sold, calculates the GST amount automatically, and keeps a record of when the GST will be due and payable, and so much more.
Why should you listen to the MYOB software publisher?
Because MYOB the company, and by extension, MYOB Accounting software, has helped thousands of customers transition to GST in Australia, New Zealand and Singapore. Now in Malaysia, MYOB wants to do the same!
The same software has been in use in the GST countries, and so the software is a tried and tested product which you can rely on to help you transition to GST environment come year 2011.
Click for latest schedule of workshops.
Who and what is MYOB?
MYOB is a trademark of MYOB Pte Ltd, Australia. MYOB the Company is the publisher of a business management software, which is called MYOB Accounting software. The MYOB software is a great tool to use in your business, any kind of business, and suitable for most Malaysian SME's. The software takes care of your invoicing to customers, updates your stock listing when goods are received or sold, calculates the GST amount automatically, and keeps a record of when the GST will be due and payable, and so much more.
Why should you listen to the MYOB software publisher?
Because MYOB the company, and by extension, MYOB Accounting software, has helped thousands of customers transition to GST in Australia, New Zealand and Singapore. Now in Malaysia, MYOB wants to do the same!
The same software has been in use in the GST countries, and so the software is a tried and tested product which you can rely on to help you transition to GST environment come year 2011.
Jun 12, 2010
Legalising sports betting can help delay Malaysia's GST implementation
What does sports betting have to do with the implementation of GST in Malaysia?
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), have suggested that the tax revenue to be collected from the legal sports betting (estimated at Rm 1 bil to Rm 3bil annually) can be used to fund public expenditures, and thus delay the implementation of GST in Malaysia. Read media report : Betting revenue can help delay GST implementation
In order to understand why such a the statement was issued, we need to understand the current sentiments on economic issues.
1. The GST has not received acceptance by Malaysian in general. The Government is forced to put on hold the implementation of GST. Partly because the Government has not done enough publicity to explain its necessity and the people resort to street protests
2. In early May, the media carried reports that the Goverment may legalise sports betting. Many people object to legalising sports betting, and have resorted to public demonstrations to express their disapproval. The objections came from religious bodies, and NGO's, and also from political bodies.
3. Around the same time, another news, this time on the country's economic status surfaced which gloomly mentioned that Malaysia will be bankrupt by 2019 if it does not cut subsidies and rein in borrowings. The statement risk bankruptcy by 2019. was quoted by the Minister in the prime Minister's Deaprtment. So we were given the impression that the country really needs funding to clear its borrowings
4. So in order to help clear disputes on the sports betting, ACCCIM issued a statement that rationalises that the tax to be collected from sports betting could be used as additional funds to reduce the country's borrowings, and hence delay GST implementation.
The statement could be an attempt by interested parties to garner support for sports betting to be made legal in Malaysia, using the unfavourable GST as an excuse.
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), have suggested that the tax revenue to be collected from the legal sports betting (estimated at Rm 1 bil to Rm 3bil annually) can be used to fund public expenditures, and thus delay the implementation of GST in Malaysia. Read media report : Betting revenue can help delay GST implementation
In order to understand why such a the statement was issued, we need to understand the current sentiments on economic issues.
1. The GST has not received acceptance by Malaysian in general. The Government is forced to put on hold the implementation of GST. Partly because the Government has not done enough publicity to explain its necessity and the people resort to street protests
2. In early May, the media carried reports that the Goverment may legalise sports betting. Many people object to legalising sports betting, and have resorted to public demonstrations to express their disapproval. The objections came from religious bodies, and NGO's, and also from political bodies.
3. Around the same time, another news, this time on the country's economic status surfaced which gloomly mentioned that Malaysia will be bankrupt by 2019 if it does not cut subsidies and rein in borrowings. The statement risk bankruptcy by 2019. was quoted by the Minister in the prime Minister's Deaprtment. So we were given the impression that the country really needs funding to clear its borrowings
4. So in order to help clear disputes on the sports betting, ACCCIM issued a statement that rationalises that the tax to be collected from sports betting could be used as additional funds to reduce the country's borrowings, and hence delay GST implementation.
The statement could be an attempt by interested parties to garner support for sports betting to be made legal in Malaysia, using the unfavourable GST as an excuse.
Jun 11, 2010
No plan to increase GST above 4%
The Malaysian government through its Deputy Finance Minister, Datuk Dr Awang Adek Hussin, gave assurance that the GST rates will not be increase above 4%.
He said 126 programmes involving 180,000 participants have been organised nationwide to explain GST implementation. (I am waiting to attend one, but there's not much publicity on these workshops / seminars)
Also of interest are the following comments :
1. the 4% rate will have a neutral impact on inflation, and overall government revenue.
2. the main objective of GST implementation is to restructure the country's taxation system, to make it comprehensive, efficient, transparent, and business-friendly, and to address the weaknesess in the present taxation system.
3. GST will not lead to higher business costs, but instead will make the prices of goods and services more competitive in the domestic and international markets. The GST paid by traders for business inputs like raw materials, telephone bills and office equipment can be claimed as a credit from the government.
4. The country's per capita income level is not a yardstick to implement GST. There are some countries with much lower per capita income which have already implemented GST. Countries such as Venezuela, Sri Lanka, South Africa and Sudan are GST-taxable countries.
5. The county's revenue collection can be increased through efficient GST collection and higher compliance level.
Extracted from Bernama report dated June 9, 2010
He said 126 programmes involving 180,000 participants have been organised nationwide to explain GST implementation. (I am waiting to attend one, but there's not much publicity on these workshops / seminars)
Also of interest are the following comments :
1. the 4% rate will have a neutral impact on inflation, and overall government revenue.
2. the main objective of GST implementation is to restructure the country's taxation system, to make it comprehensive, efficient, transparent, and business-friendly, and to address the weaknesess in the present taxation system.
3. GST will not lead to higher business costs, but instead will make the prices of goods and services more competitive in the domestic and international markets. The GST paid by traders for business inputs like raw materials, telephone bills and office equipment can be claimed as a credit from the government.
4. The country's per capita income level is not a yardstick to implement GST. There are some countries with much lower per capita income which have already implemented GST. Countries such as Venezuela, Sri Lanka, South Africa and Sudan are GST-taxable countries.
5. The county's revenue collection can be increased through efficient GST collection and higher compliance level.
Extracted from Bernama report dated June 9, 2010
May 7, 2010
GST will only be introduced after Anti Profiteering Bill is passed
The Malaysian Government will now first table the Price Control and Anti-Profiteering Bill in the Dewan Rakyat (Parliament) before it re-tables the GST bill. The Anti-Profiteering Bill is expected to be tabled in June 2010.
The Anti-Profiteering Bill will prevent indiscriminate price increases following the implementation of GST. Once the law is in place, it will allow the authorities to take action against unscrupulous traders who takes advantage of the situation to raise prices and use GST as an excuse.
The Deputy Finance Minister Datuk Seri Awang Adek Hussin made the announcement in the Dewan Negara (Senate) on 5 May 2010.
He stressed that there was no need for the public to worry about increase in prices of goods as most of the essential goods would be exempted from GST.
There are about 40 items that will be exempted from GST, including agriculture produce (like padi and fresh vegetables) basic food items (like rice, sugar, salt, flour, cooking oil), livestock (like cow, buffalo, pig, goat, chicken, duck), eggs (including salted eggs), fish, prawn, cockles and squid (including the dried and salted ones). There would be a cap on the amounts that are exempted.
Services with zero GST will include electricity supply for the first 200 unit every month for domestic consumers, the first 35 cubic metres in water supply every month for domestic consumers, goods and services meant for export and international services. Suppliers of zero rated GST items and services are allowed to claim the GST paid on inputs in the production of that item, like overheads and raw material costs.
The Minister also said that only business companies with sales of more than RM500,000 a year would be subjected to GST. This means 78 per cent or 433,558 business entities will be exempted from the GST system.
The GST rate will be capped at 4%.
With the introduction of GST, the Consumer Price Index (CPI) will reduce by 0.1%. The sectors that are currently taxed under the Sales and Services tax (SST) will see a reduction in CPI that varies from 0.08% to 2.71%
Services - 0.08%
Restaurants & Hotels - 1.2%
Communications - 1.86%
Transportation - 0.94%
Shoes & Clothes - 2.71%
Housing, Water, Electricity, gas, Fuel energy - 1.57%
Alcohol & Tobacco - 0.73%
My one sen worth :
Does it mean that shoes and clothes will become cheaper? The SST for shoes and clothes is around 10% - 20% now. With GST the tax is capped at 4%. So cheaper shoes? Lets see.
The Government is trying not to rely solely on revenues from Income Tax and petroleum forever. The Goods and Services Tax is a new source of revenue, and is based on consumption rather than income. GST would seem a fairer way to collect tax as it is based on the buying ability of the citizens.
The only reservation, is how the extra tax collected under GST (budgeted to be $1 billion per year) is going to be used to benefit Malaysians in general.
Extracted from Bernama and theSun
The Anti-Profiteering Bill will prevent indiscriminate price increases following the implementation of GST. Once the law is in place, it will allow the authorities to take action against unscrupulous traders who takes advantage of the situation to raise prices and use GST as an excuse.
The Deputy Finance Minister Datuk Seri Awang Adek Hussin made the announcement in the Dewan Negara (Senate) on 5 May 2010.
He stressed that there was no need for the public to worry about increase in prices of goods as most of the essential goods would be exempted from GST.
There are about 40 items that will be exempted from GST, including agriculture produce (like padi and fresh vegetables) basic food items (like rice, sugar, salt, flour, cooking oil), livestock (like cow, buffalo, pig, goat, chicken, duck), eggs (including salted eggs), fish, prawn, cockles and squid (including the dried and salted ones). There would be a cap on the amounts that are exempted.
Services with zero GST will include electricity supply for the first 200 unit every month for domestic consumers, the first 35 cubic metres in water supply every month for domestic consumers, goods and services meant for export and international services. Suppliers of zero rated GST items and services are allowed to claim the GST paid on inputs in the production of that item, like overheads and raw material costs.
The Minister also said that only business companies with sales of more than RM500,000 a year would be subjected to GST. This means 78 per cent or 433,558 business entities will be exempted from the GST system.
The GST rate will be capped at 4%.
With the introduction of GST, the Consumer Price Index (CPI) will reduce by 0.1%. The sectors that are currently taxed under the Sales and Services tax (SST) will see a reduction in CPI that varies from 0.08% to 2.71%
Services - 0.08%
Restaurants & Hotels - 1.2%
Communications - 1.86%
Transportation - 0.94%
Shoes & Clothes - 2.71%
Housing, Water, Electricity, gas, Fuel energy - 1.57%
Alcohol & Tobacco - 0.73%
My one sen worth :
Does it mean that shoes and clothes will become cheaper? The SST for shoes and clothes is around 10% - 20% now. With GST the tax is capped at 4%. So cheaper shoes? Lets see.
The Government is trying not to rely solely on revenues from Income Tax and petroleum forever. The Goods and Services Tax is a new source of revenue, and is based on consumption rather than income. GST would seem a fairer way to collect tax as it is based on the buying ability of the citizens.
The only reservation, is how the extra tax collected under GST (budgeted to be $1 billion per year) is going to be used to benefit Malaysians in general.
Extracted from Bernama and theSun
May 3, 2010
GST will not burden the people
The government said that the implementation of Goods and Services Tax (GST) will NOT burden the people. Controlled items would not be taxed when GST was implemented. The government had no plans to hike the price of goods or services as a lot of factors had to be considered before making such decisions.
Assurance given by : Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.
Assurance given by : Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob.
May 2, 2010
GST is a fair tax
According to the Malaysian Deputy Minister of Finance, Datuk Chor Chee Heung, GST is a consumer-based tax, and will be charged on the people only when goods were bought and services provided. When we buy, only then there is tax, if there is no purchase, there's no tax
The long-term objective of the GST was to reduce income tax collected from the people.
The current service tax will be abolished.
Chor said the government was conducting various form of studies and was developing a GST computerised system to ensure transparency and efficient GST implementation in the long term.
Nearly 90 per cent of the countries in the world have implemented the GST. We have adopted the model practised in Singapore, Australia and Canada to make comparison.
Read more here
My 1 sen worth : looks like the government is not very ready to implement GST come end 2011, unless the study mentioned can be completed by mid 2011 (which is just 12 months away).
The long-term objective of the GST was to reduce income tax collected from the people.
The current service tax will be abolished.
Chor said the government was conducting various form of studies and was developing a GST computerised system to ensure transparency and efficient GST implementation in the long term.
Nearly 90 per cent of the countries in the world have implemented the GST. We have adopted the model practised in Singapore, Australia and Canada to make comparison.
Read more here
My 1 sen worth : looks like the government is not very ready to implement GST come end 2011, unless the study mentioned can be completed by mid 2011 (which is just 12 months away).
May 1, 2010
May Day GST protest
May 1, 2010 : Malaysian Police disperse labour day GST protest
According to a report from Bernama (Malaysian National News Agency), the Police dispersed a group of 500 people who gathered at Dataran Merdeka here to protest against the proposal to implement the Goods and Services Tax (GST). The group began gathering out side the Bar Council office at Lebuh Pasar Besar since morning before marching towards Dataran Merdeka while another group attempted to enter the compound of parliament house at 11am. Police however ordered both groups to disperse as they were gathering without a permit
According to a report from Bernama (Malaysian National News Agency), the Police dispersed a group of 500 people who gathered at Dataran Merdeka here to protest against the proposal to implement the Goods and Services Tax (GST). The group began gathering out side the Bar Council office at Lebuh Pasar Besar since morning before marching towards Dataran Merdeka while another group attempted to enter the compound of parliament house at 11am. Police however ordered both groups to disperse as they were gathering without a permit
Apr 14, 2010
Apr 13, 2010
Will the civil servants get a pay rise when GST is implemented?
The Malaysian Prime Minister Datuk Seri Najib bin Tun Razak said that the salary of 1.2 million ciivl servants can be adjusted upwards when the GST is implemented.
He said that the implementation of GST will strengthen the government's revenue base, which could be used to work out better deals for the people.
The Prime Minister was quoted as saying; ***
"That is why GST is important. People want higher wages but not willing to support GST. I need the support of the 1.2 million government employees. If you want to be paid better in the future, I have to strengthen the government's revenue base because otherwise, where do I get the money to pay government servants?
*** According to an interview with Prime Minister with Bernama TV on his first year as Malaysian Prime Minister on April 4, 2010
He said that the implementation of GST will strengthen the government's revenue base, which could be used to work out better deals for the people.
The Prime Minister was quoted as saying; ***
"That is why GST is important. People want higher wages but not willing to support GST. I need the support of the 1.2 million government employees. If you want to be paid better in the future, I have to strengthen the government's revenue base because otherwise, where do I get the money to pay government servants?
*** According to an interview with Prime Minister with Bernama TV on his first year as Malaysian Prime Minister on April 4, 2010
Mar 28, 2010
GST will not result in (long term) inflation in Malaysia, says Bank Negara assistant governor.
One of the main concerns of the GST is that it will cause an increase in inflation rates.
According to Bank Negara Malaysia (BNM) assistant governor, Dr Sukhdave Singh, the introduction of GST in Malaysia could cause be a temporary spike in prices (based on experiences of other countries), and a moderate increase in the rate of inflation.
"If it (GST) is to be introduced in a moderate level (estimated at 4%), we will see a temporary moderate increase in inflation rate. But, if there is no secondary impact, then the inflation rate will come down very quickly because there is nothing to support it," he said
For now, BNM do not think it will create inflation. He said if there are opportunistic attempts to increase prices, thus inducing an inflationary cycle, BNM will use monetary policy to check it (inflation).
So, what is the main purpose of introducing GST in Malaysia? Reading between the lines from these 2 articles, GST will "certainly be steadying the development in the economy after the introduction".
Do your part for nation building. That's what taxes are for anyway.
See full article in
The Star dated March 26, 2010
Bernama dated March 25, 2010
According to Bank Negara Malaysia (BNM) assistant governor, Dr Sukhdave Singh, the introduction of GST in Malaysia could cause be a temporary spike in prices (based on experiences of other countries), and a moderate increase in the rate of inflation.
"If it (GST) is to be introduced in a moderate level (estimated at 4%), we will see a temporary moderate increase in inflation rate. But, if there is no secondary impact, then the inflation rate will come down very quickly because there is nothing to support it," he said
For now, BNM do not think it will create inflation. He said if there are opportunistic attempts to increase prices, thus inducing an inflationary cycle, BNM will use monetary policy to check it (inflation).
So, what is the main purpose of introducing GST in Malaysia? Reading between the lines from these 2 articles, GST will "certainly be steadying the development in the economy after the introduction".
Do your part for nation building. That's what taxes are for anyway.
See full article in
The Star dated March 26, 2010
Bernama dated March 25, 2010
Mar 27, 2010
Government to provide public education on GST
How is the Malaysian Government going to educate the public on the Malaysian GST issue?
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said, "the Government would embark on a programme, with help from the Information Department, to educate the public and disseminate accurate information."
He also said that "The Government will only implement the proposed Goods and Services Tax (GST) in Malaysia if the people accept it"
In addition, he said the Government wanted the people to view the GST favourably, rather than look at it as something imposed on them. The people are (will be?) given the chance to give input so that when implemented, GST will be accepted by the people and the government. In fact, I think the people should feel proud because they are being consulted. (how does one interpret this statement purportedly from the Minister?)
The public education will allay the many misconceptions about GST, and to dispel the perception that the delay in GST implementation in Malaysia to a later date, is not a lack of political will.
Background: Note :
The Malaysian government decided to postpone tabling of the Goods and Services Tax (GST) Bill for second reading in parliament scheduled on March 17, 2010, after having tabled it for first reading in December 2009.
We hope to see more active discussion, with facts and figures, not only official statements from the Goverment.
Read the actual interviews with the Minister here and here
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said, "the Government would embark on a programme, with help from the Information Department, to educate the public and disseminate accurate information."
He also said that "The Government will only implement the proposed Goods and Services Tax (GST) in Malaysia if the people accept it"
In addition, he said the Government wanted the people to view the GST favourably, rather than look at it as something imposed on them. The people are (will be?) given the chance to give input so that when implemented, GST will be accepted by the people and the government. In fact, I think the people should feel proud because they are being consulted. (how does one interpret this statement purportedly from the Minister?)
The public education will allay the many misconceptions about GST, and to dispel the perception that the delay in GST implementation in Malaysia to a later date, is not a lack of political will.
Background: Note :
The Malaysian government decided to postpone tabling of the Goods and Services Tax (GST) Bill for second reading in parliament scheduled on March 17, 2010, after having tabled it for first reading in December 2009.
We hope to see more active discussion, with facts and figures, not only official statements from the Goverment.
Read the actual interviews with the Minister here and here
Malaysian GST
Malaysia is on the verge of implementing GST come 2011. However, the Government did not proceed to table the 2nd reading of the GST Act in Parliment in March 2010.
Why did the Malaysian government decide not to proceed with the tabling of GST Act in parliment?
Even at this late stage, a majority of Malaysians do not know a thing or two about GST. So the Malaysian Government is going to engage the people to get the general consensus before they implement GST.
In my nature of business as a supplier of accounting software, I meet small to medium sized business owners everyday, and many are still ignorant of GST, its implications on their business, and how to go about preparing for the eventual coming of GST.
So this blog will be a good resource for my customers, and the general public.
Why did the Malaysian government decide not to proceed with the tabling of GST Act in parliment?
Even at this late stage, a majority of Malaysians do not know a thing or two about GST. So the Malaysian Government is going to engage the people to get the general consensus before they implement GST.
In my nature of business as a supplier of accounting software, I meet small to medium sized business owners everyday, and many are still ignorant of GST, its implications on their business, and how to go about preparing for the eventual coming of GST.
So this blog will be a good resource for my customers, and the general public.
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