Thursday, December 24, 2009

GST implementation

Can Somebody in ministerial position explain this thoroughly?
When i read newspapers either from parliament meetings or personal comments sent to theStar,when i listened to news too, some says GST will lessening the current tax while i even heard of some says that it will burdening us heavily.
4% GST (Good and Services Tax) does means on 2011 onwards, all items we purchased will be taxed and it is including services, for example you are taking aerobics or yoga courses at any fitness centres.
Generally 4% is much lower than current tax implemented,at 5% and 10% but we have to really understand that 4% will be charged on every chain the good went until lastly it will charged to us. Take example if we bought chicken meat, and it has to go through from chicken farmer then the middleman before it comes to seller at wet market. It will takes 3 people that will be charged 4% GST on chicken meat prior to 4% that is charged to us. That will make us paying RM7.017 (considering 1kg chicken meat is RM6) by using GST.
If you taken count on current tax implemented,chicken would not be taxed anyway. So do you see the differences here?
I may understand a bit, at least please bring the light over the dimmed issue here, how it will be implemented and counted. I foreseen this will burdening common people like me, and people at Sabah and Sarawak that already paying higher than what we paid for same items there.

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