28 December 2009

GST - Go and Squeeze Them

This is the motive of the UMNO/BN government.

Our Rakyat do not fully understand the implication of GST, until it is implemented and prices of goods spiralling upwards. By then it is too late.

A rich country like Singapore introduced GST at 3%.
A poor Malaysia wants to implement GST at 4%

GST is a multi-stage tax system.

Everything the sellers sold, from manufacturer, wholesaler to retailers, collect GST for the government.  Unlike the the current sales and service tax (SST) is a single-stage tax. Only one party along the supply chain collect the SST for the government. If the manufacturer collects the tax, the rest are not allowed to collect.

Just imagine every seller add GST when they sell.

For example: The current Sales Tax for Toilet soap is 10%. With GST, the manufacturer pays 4% to the govt when he sells it to the Wholesaler, the Wholesaler pays the govt another 4% when he sells to a Retailer; and when the Retailer sells it to the Consumer, he pays another 4% to the govt. The Consumer actually ends up paying more than 12% in cummulative GSTs for the same piece of soap or > 20% more in taxes. (10% vs 12%+++)

If the supply chain is longer than 3 stages, the consumer ends up paying 4% more for each addition stage. Eg Manufacturer to Agent (4%) to Wholsaler (4%) to Retailer (4%) to Consumer (4%).. Total 16% ++++ (vs 10%) or 60% more in taxes!!!!

If the GST is not stopped, the Rakyat will ended up paying very very very high prices for everything.

2 comments:

  1. salam SPKR,
    Banyak program penambahan pengundi di KR.Insyaallah ana juga akan gerakan disini.Doakan.

    Hari ini kita bercakap pasal GST.Bagaimana rizab emas negara? Cukupkah hingga 10 tahun lagi untuk proses percetakkan ringgit?Tidakkah 1Malaysia hari ini boros berbelanja...

    ReplyDelete
  2. AM.

    hear say .... ini adalah hari-hari terakhir mereka menguasai parlimen dan kerajaan. mereka tak perlukan wang lagi selepas itu.

    ReplyDelete

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