10 benefits of GST for Malaysians

The Finance Ministry has come out with a list of 10 benefits of GST for the Malaysian business sector and consumers.

The 10 advantages of GST are

1. GST is an effective tax system.  It is a self-assessment tax and there are penalties to ensure compliance.  
2. GST is a transparent tax structure. The tax amount is clearly shown on the sales invoice.  Business and consumers will know exactly how much tax he or she is paying on the goods or services.
3. GST will ensure that everybody pays their fair share of taxes.  You pay tax when you spend.
4. Shadow business will be encouraged to register for GST, in order to claim for input tax credit.
5. With GST, there is a marked reduction in red tape and bureaucracy. 
6. GST will lower the cost of doing business.  The input tax paid is passed on to the next consumer on the supply chain, and is not a cost of doing business, unless you are not registered for GST
7. The lower income group will not be burdened.  The Malaysian government will give out BR1M aid to offset the impact of GST on the CPI (Consumer Price Index)
8. The export sector will become more competitive, as there is no tax on exports
9. For the nation, GST is an additional  form of income, other than income tax and petroleum tax
10. The prices of many items will come down, now that the GST tax is at a lower rate of tax of 6% compared to sales tax of 10%. 

It  is also noted that the GST implementation will have a direct impact on the CPI which would take 6 monhts to stabilise. 

Are you already planning to buy lots of toilet paper and other household necessities at pre-GST prices? .

   
Extracted from a Bernama news report of 10 advantages of GST