GST: What to look for in receipts

Posted on September 7, 2012, Friday

The Malaysian government will soon be implementing the long awaited goods and services tax (GST) which will replace the existing current sales tax (five per cent to 10 per cent) and the service tax (six per cent).

If the percentage of GST is determined at four per cent or five per cent then, it will be lower than the current sales tax of 10 per cent or service tax of six per cent. This series of seven articles will be publised on Mondays, Wednesdays and Fridays and highlight the purpose of the GST and why the public should support it.

Part 3

This third article deals with what to look for in your receipts during payment.

How often do we look at our receipts?

Go on, admit it – most of the time we simply discard our bill without looking at it. Unless of course, it is a hefty credit card bill. But when you head to the nearest 7 Eleven and purchase that can of Coke or when you buy a burger at McDonald’s, do you really look at your receipt and see where those figures come from?

Do you know that there are extra charges that often go unnoticed by the customer?

Do you realise that you have been paying extra charges for a long time now?

Do you have an idea of how much in extra charges you are paying?

Of course, all countries in the world collect taxes to run their countries. Service tax is one example.

As consumers, we should always be aware of the hidden and not so hidden charges that go around us. Being a consumer, we should also be aware of what we are charged for and why we are paying the extra charge.

Learned consumers have a right to know what charges are being transferred to us, what rate is being taxed, and why we should bear the burden of paying these taxes. We need to understand what our responsibilities are as tax payers and recognise what items are charged taxes and what items are not charge taxes so that we may make better informed decisions on purchasing.

One is the sales tax of 10 per cent which applies to most goods manufactured.

On the other hand, when we eat at a café, the GST is at six per cent which is the government tax on consumers.

Now going back to the sales tax of 10 per cent and service tax of six per cent, these two taxes have been around for a long time and many do not really complain about these taxes. We may accept it as ‘normal’ for us to be taxed, or we are simply ignorant of the current tax regime.

As Malaysia is thinking of introducing the GST soon, it should be known that this is not a new tax. It will instead act as a replacement to the tax that we are already paying and not a new and additional tax. This impending GST ‘replaces’ the current sales and service tax.

Furthermore, as the rate of GST tax is lower, hopefully may be lower at four per cent or five per cent, then this is a lower tax compared with what we have been paying – good news for all Malaysians indeed.

Exciting news? But there’s more to the GST that we, as informed consumers need to know and which will be unveiled in our coming articles.

For further inquiries, please refer to www.gst.customs.gov.my.

Read more: http://www.theborneopost.com/2012/09/07/gst-what-to-look-for-in-receipts/#ixzz2WC909eU4