Challenges GST - Critics

There are many complaints and unsatisfied voices and opinions from the businesses and consumers about the implementation of GST in Malaysia. Definitely, the consumers are hurt by the price increases of goods and services due to the implementation of GST together with other factors and the possibility of hardship occurrence due to the increment of cost burden and financial burden on cost of living that might causes other issues such as mentally issue due to the overload of pressure on the cost of living. How about the businesses?? Some...

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Challenges GST – Critics , Businesses

There are many negative consequences to the businesses from the implementation of GST which shown in previous articles and examples. The businesses bear financial cost and non-financial costs the caused by the GST where the financial cost is referring to the system upgrading for the implementation of GST. In theory, the businesses would not hurt by the GST due to the claim basis and they can transfer the extra costs to the end users, but is that true? Let's see some example on the effects to the businesses as the result of GST. The most...

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Challenges of GST

There is always challenge for a country to implement a new system or policy as it has to consider the widespread effect on individual citizen, businesses, government and the whole economy. The regulators have to balance the interest between the benefits and disadvantages of the new policy along with the long term goal. One of the challenges in the implementation of GST might be the level of technological knowledge of the citizen especially those senior citizen. This is not a discrimination issue but in fact, many senior citizens in Malaysia...

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Will GST causes the hyperinflation?

While the Malaysian GST started to be effective on 1st April 2015, public are worried on their daily life due to the increment in cost of living with the same income level, therefore the Malaysian government had maintain the basic food items, education, healthcare and medical to be exempted from the GST in order to ensure the citizen quality of life would not be affected by the GST. According to our Prime minister Datuk Seri Najib Tun Razak, the petrol of RON 95, diesel and LPG confirmed to be exempted from GST to avoid the increment...

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GST Imported services and Exported services

Imported services Under the GST Act, “imported services” means services that are made by a supplier who belongs in a country other than Malaysia or who carries on business outside Malaysia to a recipient who belongs to Malaysia and such services are consumed in Malaysia. In short, any service consumed in Malaysia and are for the business purposes is recognise as imported services and shall be liable for GST for the portion of the services consume in Malaysia. There are few examples extracted from the “general guide on GST” by Royal Malaysian...

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