Gst of Malaysia
GST of Malaysia.
Recently, Government Malaysia was implementation to change the service system and sale system tax to Good Service Tax system (GST) start from third quarter in 2011. GST is Value-Added tax (VAT), there is tax on all taxable of goods and services in a country except those specially exempted goods and services. The implement of the GST is to substitute the sales and service tax which has been used in the country for several decades. It also can help government to reduce it’s to fall back on profit from PETRONAS, Malaysia's state-owned oil company. Beside to reduce the dependent on profit from PETRONAS Company, it also can reduce the percentage of importation of goods and services of Malaysia.
Malaysian government imposes various kind of tax that can be divided into income tax, gift tax, property tax, corporate tax, estate tax and many more, Government used GST system to replaces service system and sale system. The standard GSC tax rate is 4% and zero tax rates. Zero present rate will be apply to export and some goods. Such: rice, cooking oil, beef, mutton, pork, chicken, fish, prawns, squid, vegetables, sugar, salt and water. Besides that, citizen of Malaysia who are in lower income group, they can get exempted from paying GST on services such as public transport, toll, taxis, hospital and healthcare, public education services, residential property, land for agriculture use, and financial services. Thus, the lower income group will not be burdened by the GST. But the result showed no output tax will apply and correspondingly, no entitlement to input tax will exist. This is because government of Malaysia haven make announcement for the date of introduction of the GST to public.
The advantage of the GST system is the system will make the taxing system more transparent. The consumer can clearly to know the amount the taxpayer should pay. Moreover, under the GST regime, the sales tax and services tax that people have been paying all this while, will
Recently, Government Malaysia was implementation to change the service system and sale system tax to Good Service Tax system (GST) start from third quarter in 2011. GST is Value-Added tax (VAT), there is tax on all taxable of goods and services in a country except those specially exempted goods and services. The implement of the GST is to substitute the sales and service tax which has been used in the country for several decades. It also can help government to reduce it’s to fall back on profit from PETRONAS, Malaysia's state-owned oil company. Beside to reduce the dependent on profit from PETRONAS Company, it also can reduce the percentage of importation of goods and services of Malaysia.
Malaysian government imposes various kind of tax that can be divided into income tax, gift tax, property tax, corporate tax, estate tax and many more, Government used GST system to replaces service system and sale system. The standard GSC tax rate is 4% and zero tax rates. Zero present rate will be apply to export and some goods. Such: rice, cooking oil, beef, mutton, pork, chicken, fish, prawns, squid, vegetables, sugar, salt and water. Besides that, citizen of Malaysia who are in lower income group, they can get exempted from paying GST on services such as public transport, toll, taxis, hospital and healthcare, public education services, residential property, land for agriculture use, and financial services. Thus, the lower income group will not be burdened by the GST. But the result showed no output tax will apply and correspondingly, no entitlement to input tax will exist. This is because government of Malaysia haven make announcement for the date of introduction of the GST to public.
The advantage of the GST system is the system will make the taxing system more transparent. The consumer can clearly to know the amount the taxpayer should pay. Moreover, under the GST regime, the sales tax and services tax that people have been paying all this while, will