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Friday, February 21, 2014

GST will bridge the gap between rich and poor

FEBRUARY 17, 2014
Mohamad Zin Surif said, the effective implementation of GST
would enable the government to refund the bigger tax revenue
collected in the form of development and well-being projects
for the people. — Picture by Saw Siow Feng
KUALA LUMPUR, Feb 17 — The proposed Goods and Services Tax (GST) that will become effective on April 2015 will help the government streamline tax collection and make use of the tax revenue to help the low income group.

RapidKL's Assistant Vice President (Strategic Support Unit) Mohd Amir Abd Halim said the implementation of GST would in fact ease the burden on the people, especially the low-income group.

“GST charged at the rate of six per cent is a broad based consumption tax that affects all parties in a multi-stage taxation system across the value chain right from the manufacturer to the end consumer.

“It is based on value added concept that avoids duplication of taxes and is in contrast with the current Sales and Service Tax (SST) of 16 per cent,” he told Bernama recently.

This means with GST, people only pay six per cent tax on their spending compared with 16 per cent now.

Bandar Tun Razak Hawkers and Traders Association Chairman Mohamad Zin Surif said when implemented, GST would reduce excessive profits made by parties at the various level of the supply chain with the consumers at the end of the supply chain bearing bulk of the tax. 

“I think the scenario of price hikes today is because of certain parties are trying to profit as much as possible before the GST is implemented.

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