GST Boon or Bane For Malaysian Economy Essays

GST Boon or Bane For Malaysian Economy Essays GST Boon or Bane For Malaysian Economy Essay GST Boon or Bane For Malaysian Economy Essay Boon or bane for the Malaysian economy? Tantrum Ursula Finance Feb 17, 2014, 9:00 AM Its been a whirlwind year of Malaysian price and tax increases. Right at the centre is the controversial Goods and Services Tax at a flat 6%, revealed in the 2014 Budget announcement by Prime Minister Dates Series Nasal Razor. We look at the facts of the SST and how it will impact the economy. PRO: A replacement tax, not an additional tax In all the arguing and debating about the SST, Its worth noting that the SST replaces resent consumption taxes namely the SST, or sales tax (10%) and the service tax (6%). In theory, a flat 6% SST means consumers will be charged less, since theyre not paying 10% + PRO: Better for businesses Economists prefer the SST over SST because It Is more transparent and more business friendly. With the government haling the ease of administering SST including simplified tax returns preparing for April 1, 201 5 will not be as difficult for local firms as economists earlier worried. CON: A year of price increases, new taxes, and subsidy cuts This year Malaysian have had to contend with petrol subsidy cuts, the abolishment f the sugar subsidy, public transport price increases, likely toll hike and the SST. The average Malaysian is hurting from all the increases, meaning come 2015 the SST will start on a bad foot, regardless of how its marketed to the public. : Ideally, the SST would have been announced this year and the rest of the price hikes would be staggered over the next five years. CON: Expect a Jump in inflation Other countries introducing a SST have had to deal with a sudden sharp jump in inflation. Theres no reason to indicate the same will not apply for Malaysia, which already has to deal with serious inflation. An estimated 2-3% higher inflation rate can be expected. Conclusion: Not in love with the tax, but can it be the cure Malaysia needs? Pituitary wants all of Malaysia to know that some sacrifices have to take place to take Malaysia out of its deficit. The average Malaysian wants a commensurate Increase in standard of living to match the rising cost of living. All in all, the SST Is a step forward, but its clear that its a forced step nobody wants a tax when everything else costs more, too. AMORAL URSULA is a Journalist who has worked In political news, international affairs, business, sports and lifestyle. The founding partner at boutique creative services agency OFFSET Salsa hopes Pituitary doesnt resort to negligible quick fixes to boost the economy, but rather holistic approaches that can be sustainable long-term. BY Impassibility Amateur Ursula Finance Feb 17, 2014, 9:00 AM announcement by Prime Minister Dates Series Ninja Razor. We look at the facts of the In all the arguing and debating about the SST, its worth noting that the SST replaces paying 10% + 6%. PRO: Better for businesses Economists prefer the SST over SST because it is more transparent and more business friendly. With the government hailing the ease of administering SST of the sugar subsidy, public transport price increases, likely toll hike and the SST. The average Malaysian is hurting from all the increases, meaning come 201 5 the SST will Other countries introducing a SST have had to deal with a sudden sharp Jump in increase in standard of living to match the rising cost of living. All in all, the SST is a everything else costs more, too. AMORAL RUSSIAN is a Journalist who has worked in partner at boutique creative services agency OFFSET Asia hopes Pituitary doesnt