Prime minister Tun Dr Mahathir Mohamad recently announced the sales and services tax (SST) will be reintroduced in September this year. Ahead of its return, a report on the implementation of the SST will be submitted to the government within two weeks, according to Bernama.
This was revealed by Tun Daim Zainuddin, head of the government’s Council of Eminent Persons, who also said the SST system will be an “updated version” with the ultimate goal of lowering the price of goods and services for the people. Where the GST rate was set at 6%, finance minister Lim Guan Eng disclosed the SST rate will be set the same as in the past at 10%.
“There will be no immediate need to introduce any new taxes, nor increase the personal income tax or corporate tax rates at this juncture,” said Daim. He added that the SST will allow the government to secure sufficient revenue to cover the loss of proceeds from the removal of GST.
“The Royal Malaysian Customs Department has already given me a preliminary report. Revenue may be less than RM5 billion but oil prices are increasing steadily. The [2018] Budget was worked out on the premise that oil prices would hover around US$52 (RM206.78) per barrel but now it is fetching about US$70 (RM278.35) per barrel. Last week, it was US$80 (RM318.12) per barrel. For every US$1 (RM3.98) movement, we will earn RM300 million to cover our shortfall,” Daim explained.
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Dun tipu lah. Only way to reduce prices is to lower sst below 5% but FM alredi said gonna be 10%. So either LGE is main tembak the sst percent or Daim just countermanded LGE instructions.
Readying my Gst free popcorn. Hahaha!
Worry about the import tax than the SST first.
Just incase you don’t know the import tax is 100%
Dude chill lah u think just making it 1% lesser than GST will result in savings? Go back to school lah bro. There are many ways to reduce prices of goods and services from giving tax breaks to companies and lowering other costs for businesses and will result in a drop in prices.
macai detected
BN macai detected
1 more way, boicock dont buy then the manufacturer will start to give huge discount in order to clear stock hahaha
Paultan, I think the calculation should be revised. Please be aware that Government Approved Selling price much lower when SST comes in compared to GST. Not to forget every part supplied to the manufacturer with 6% charged for every tier from Plant, distributor, wholesaler and customer ( Car manufacturer)
you still believing this lie? we only create it to make the uneducated fools to hate najib & the previous gov. please don’t tell me you’re one of the uneducated fool LOL
If so, can u explain how does the Gov collect more revenue from 6% GST than 10% SST? Show us how smart u are
Revenue increased becoz those previously undeclared profits r now taxable via GST lor. SST only benefits the rich and creative accounting. Now we revert back again to make the rich even richer.
Revenue increased becoz of undeclared profits?
Do u have proof of those undeclared profits? If SST only benefits the rich, how does GST benefits the poor?
Easy. Despite being lower at 6%, the revenue brought in by GST is higher than 10% SST no?
And GST itself dun help the poor but the money gained is used for BR1M which helps the poor, not the rich.
The revenue brought in by GST is higher than SST does not mean SST is under declaration. This is an accusation, not proof!
If GST really helps the poor, why would the majority of rakyat wants to abolish GST?
Nope. GST forces businesses to be transparent with their pricing, and previously lotsa transactions esp transfer pricing was not declared with SST. This leads to leakages in potential income which GST fixed, hence the higher revenue despite the lower %.
Dun help the poor? Try asking them if they willing to forego BR1M and see their response. Majority voted PH becoz they janji to continue BR1M, not in spite of it. But now likely PH BR1M is just one capati.
Where were you before? Why suddenly ‘bijak’ than LGE now?
Jamal called me and i gotta help him.
main tembak john ni..
Interesting reading.
An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.
The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.. All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A…. (substituting grades for dollars – something closer to home and more readily understood by all).
After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.
The second test average was a D! No one was happy.
When the 3rd test rolled around, the average was an F.
As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.
To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed. Could not be any simpler than that. (Please pass this on) These are possibly the 5 best sentences you’ll ever read and all applicable to this experiment:
1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.
2. What one person receives without working for, another person must work for without receiving.
3. The government cannot give to anybody anything that the government does not first take from somebody else.
4. You cannot multiply wealth by dividing it!
5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.
BRIM n corruption will kill our nation.
I read that study b4, and u took it out of context. It was an experiment onto pure communism. BR1M is a totally diff thing which focuses on social responsibility.
It dun obviate the responsibility of the poor to uplift themselves from poverty, but if BR1M can alleviate their daily dependence worries, it will gip them the opportunity to improve themselves or their children via higher education pursuits. This is something similar to what EU socialist govs had done, and it worked for them.
I disagree. BR1M does not help the poor at all, in fact it makes them worse. Why? With BR1M, it will make the poor dependant on the Gov, which is not the right mechanism. You help others by teaching them to fish, and not handling the fish to them. Most BR1M people will finish the money given to them before the next BR1M. The cycle will continue and they will never break past poverty. They can only change their lives when they earn enough revenue to break the cycle.
Nope. Social studies have shown that when humans stop worrying about their survivability, they became educated & cultured. This increased their living standards which spurs them to reach higher and higher affability, hence results in the whole society & thus country attains developed status. That was the noble goal of BR1M and not just blanket subsidies or communist economy. What these recipients do with that money is their responsibility.
Gov shud trust them as adults and not tell them what to do with that money.
Let me give you a tip. What makes you think post-SST govt approved car price is similar than GST time govt approved car price? Your premise is logical if only these two are similar. But, post-SST time without GST will mean govt approved car price is lower to start with. Due to this, add 10% is still lower than GST because GST is layered tax, and that added up to the cost of the car price, thus higher govt approved car price.
Ah, someone who understands why revenue brought in by GST is higher than SST. It’s bcoz GST is layered tax, not bcoz SST is some under declaration nonsense.
Fallacy of thinking that GST is layered tax when in reality it rolls over to the next level. Those who don’t have Accounting degree like me can’t understand this concept.
What made things expensive is double taxation. Please scrap trade barriers like import and excise duties and just charge single tax for each item especially consumer goods.
why do the gov wanna scrap the import & excise duties when they are begging for people money with the tabung harapan now? you wanna support gov you pay the tax & duties laa… lagi mau ajar.
How is this a difficult choice? How does one pay for something cheaper when GST is at 0%? No business will lower their prices beyond 6% because from a business standpoint, GST is cost efficient compared to SST for most of not all business.
If you’re going to buy a car, buy it now, not after SST implementation. Not unless PH comes up with something drastic like reducing import tax. Now THAT, will be a total game changer.
reducing import tax??? the gov now are begging the money from the people and you expect they will reduce the import tax? don’t you know that they launched the tabung harapan yesterday? where is your logic?
It is too simplistic to just compare 6% vs 10%. Remember GST is layered tax, why do you only factor the last mile tax? If due to GST, car cost is $50k, ad GST 6% becomes $53k. Without GST, car cost is lower say due to 2 layer of GST, $50k will become $44.5k. Add 10% SST and it is only $50k. Now do you see SST 10% is in fact causing the car price to be lower than GST 6% time?
looking at it, yes you might be right bro john. but things are still hanging and not confirm. let see what will happen after september.
No worries. Our new ministers r veli gud at countering what each other says. U may not even know if things actually do happen past Sept.
i hope they don depend on oil way too much
guess what, previous gov let Petronas do they thing will maybe very little influence, now, Petronas register higher profit as just announced, Gov-of-the-day just might milk them dry.. finger crossed!
That is exactly what they plan to do, ask for more dividend from GLC.
Love or hate Najib, at least under him the ringgit is not tied to oil price. also, almost all big GLC have bigger savings than previously, this means more money for investment to grow.
If we keep taking money out from GLC, how are they going to invest and grow?
Lembu punya susu, sapi dapat nama
Oil price predicting to drop soon again. Lets see how far down their jaws will drop when it does.