Goods and services tax in Malaysia
Encyclopedia
Goods and services taxes of M'sia (GST) or value added tax
may be implemented by the Malaysian government somewhere in the third quarter of 2011. The purpose of its introduction will be to replace the current sales and service tax that has used in Malaysia over the last few decades.The government is seeking additional revenue to off-set its budget deficit and reduce dependence on revenue from Petronas, Malaysia's state-owned oil company.
The Goods and services tax is scheduled to be implemented in the third quarter of 2011. This four percent tax will replace a sales and service tax currently levied at rates between five and ten percent.
The Goods and Services Tax Bill 2009 has been tabled for its first reading at the Dewan Rakyat
on 16 December 2009.
The GST Bill which was to be tabled at during a Parliament sitting, was delayed amid mounting criticism. The government has responded with claims that the tax is needed to reduce dependence on oil income which it says will not be sustainable in the future. National Consumer Complaints Centre head Muhammad Sha’ani Abdullah has said, “The government should create more awareness on what the GST is. The public cannot be blamed for their lack of understanding, and thus, their fears.” Sha’ani says that the GST will improve accounting, reduce tax fraud, and make it much easier for the government to enforce the upcoming Anti-Profiteering Act more effectively. Muslim Consumer Association of Malaysia leader Datuk Dr Ma’amor Osman said the GST could help end dishonest business practices but also expressed concern about how the tax would be applied to medical products and services. The group leading the campaign against the GST, known as Protes, objects to the GST because of concerns about its effects on low-income Malaysians cancelled a planned protest but says that they will continue to agitate against this legislation.
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
may be implemented by the Malaysian government somewhere in the third quarter of 2011. The purpose of its introduction will be to replace the current sales and service tax that has used in Malaysia over the last few decades.The government is seeking additional revenue to off-set its budget deficit and reduce dependence on revenue from Petronas, Malaysia's state-owned oil company.
The Goods and services tax is scheduled to be implemented in the third quarter of 2011. This four percent tax will replace a sales and service tax currently levied at rates between five and ten percent.
The Goods and Services Tax Bill 2009 has been tabled for its first reading at the Dewan Rakyat
Dewan Rakyat
The Dewan Rakyat is the lower house of the Parliament of Malaysia. All bills must usually be passed by both the Dewan Rakyat and the Dewan Negara , before they are given Royal Assent by the Yang di-Pertuan Agong...
on 16 December 2009.
The GST Bill which was to be tabled at during a Parliament sitting, was delayed amid mounting criticism. The government has responded with claims that the tax is needed to reduce dependence on oil income which it says will not be sustainable in the future. National Consumer Complaints Centre head Muhammad Sha’ani Abdullah has said, “The government should create more awareness on what the GST is. The public cannot be blamed for their lack of understanding, and thus, their fears.” Sha’ani says that the GST will improve accounting, reduce tax fraud, and make it much easier for the government to enforce the upcoming Anti-Profiteering Act more effectively. Muslim Consumer Association of Malaysia leader Datuk Dr Ma’amor Osman said the GST could help end dishonest business practices but also expressed concern about how the tax would be applied to medical products and services. The group leading the campaign against the GST, known as Protes, objects to the GST because of concerns about its effects on low-income Malaysians cancelled a planned protest but says that they will continue to agitate against this legislation.