from what i understand they will not implement GST immediately but they just provide the timeframe of the implementation...
in addition to current economic downturn it is not very wise to do it now bcoz government encourage people to spend and stimulate the economy...
IINM they will get it adopted in 2011...
other country like HK and singapore has been successfully implement it whose following the US...

The lowering of personal income tax is the move give way to GST, although 1% might be a baby step forward.

We cannot run away with GST, soon or later, it will be implemented.

@! Love Money,
Yes except corporations been told to embrace GST by 1 Jan 2010 hence I sorta expected GST to be announced. Like i said, the later it's implemented, the better it is for all of us

@cherroy,
I haven't seen the actual breakdown but if I understand it correctly it only affects those in the 27% income bracket, or everyone's tax percentage drops by 1%? *grins*

better for us hopefully...
so if each bracket is lowered by 1% people will only enjoy the slight differences but urge to pay more for the GST... this is sick

@! Love Money,
I'm not sure if it's a reduction of 1% tax for all tax brackets because it states maximum tax lowered from 27% to 26% so I merely assumed it was only for the higher income group *shrugs* Guess we wouldn't know for sure until we the actual breakdown.

well, i guess increasing the personal relief and the EPF & insurance relief to extra RM1000 is the first step for them to justify implementing the GST soon. And at the end, we are still paying more for everything and we end up poorer.

Damn depress now..

---

Added on October 24, 2009, 1:33 amIf only all brakets would -1%.... that will at least be fairer. even though it's not much..

The IRB recently implementing new income deduction plan that the IRB claims that it will help us by deducting the right amount for the income tax so that we wouldn't pay more during end of the year when the bonus is given to us. I end up having have to pay 100% more tax every month. =(



This post has been edited by Sitting Duck: Oct 24 2009, 01:33 AM

If our government manages the money they stand to gain well, we have no doubt lor. But given their record, its like pouring money into their pocket.

GST is worse than ah long. Imagine manufacturer->stockist->distributor->dealer->enduser... 4 x 10% GST. I think thats what holding them back. Malaysian in general aint ready for this.

GST only applies to end user.
The rest of the guys are in business, they can claim it back.

Can you elaborate on this further?

The info I found on the web point to multi stage tax, like the one I mentioned earlier. I got client in Singapore who source material from us. According to them, when they sell material to engineering shop, they include the GST. Then after the engineering shop done with their work, they again add GST. The stockist of the finished material isnt the enduser itself. When they sell to an enduser, the stockist also add another GST. It just ballooning effect. Its crazy...

This post has been edited by andrekua: Oct 24 2009, 07:31 AM

Although GST is a multi stage tax and is chargeable at each level of the production line, is claimable against inputs, and only the end user is supposed to be bearing the GST.

Basically, to avoid a situation where the tax cascades along the production and supply chain, suppliers of taxable goods and services can claim a full credit offset of input taxes paid, against the output tax charged. This is called the Input Tax Credit. I.e, GST should not form a permanent cost to the supplier. Neither is it a tax on the business.

And because the end user is not entitled to claim input tax, he/she bears the burden

In Singapore, the claiming process is stright-forward and quite smooth. I fear for the claiming process in Malaysia.

When money is out, it will be hard to get back the credits. Look at how many years for the IRB to fine-tune the tax refund process.

Exploitation will be inevitable at Iskandar Malaysia where 15% tax incentive implementation will take place. Those who are smart will be able to turn the tables around there and then. Milking off the tax incentive introduced.

Regards, Joey

This post has been edited by Joey Christensen: Oct 24 2009, 10:02 AM

bout the RM50 charges on cc.. old user oso kena issit? or new applicants?

I think increase personal relief for another RM1,000 is not much but it is better than nothing. Let say, if your income bracket is 13%, you will save RM130 but as RM50 service tax on credit card will be introduced you saving of RM130 will be reduced, i.e. if you have 2 cards, you only gain RM30 but if you have let say 4 cards, then you net effect is -RM70.

sharinginfoz
http://sharinginfoz.blogspot.com/2009/10/b...udget-2010.html

Is the Pay As You Go (PAYG) tax changes which include substantial revisions to various tax withholding arrangements been implemented? Other issues such as embedded tax savings and price effects for general government agencies and Government Business Divisions (GBDs) are outlined.

The effective implementation of all of these GSTs and wide ranging arrangements and obligations has required a considerable whole of government coordinated effort which I doubt will not be implemented in accordance with plans.

Regards, Joey

p.s: In layman's term it is understood as it is sucking up more money than ever expected. It's Malaysia and it is the naivety of the Government which is so breathtaking. I have learnt this way back in the 90s where there's a simple saying that goes like this, "to absorb or to be absorbed" by GST fixings.

And the saying goes, the poor will be tax the most (percentage wise) and the rich sometimes pay 0% tax.

I think the impact is not upon those who are out of the taxable schema. There's nothing to be get so excited about it. But the new retirement scheme to enable non-fixed income earners to contribute to EPF is definitely a good move though. It's far too little by comparison to our normal EPF contribution breakdowns.

Regards, Joey

i don think that is the case...only the highest bracket get that....

the rest the same....see for yourself the statement


Top marginal tax rate for individuals, not all margin range...

if u really wanna see reduction, go Iskandar work next year then....they probably re-adjust for there, max is 15%

Are you sure?

Regards, Joey

1% reduction in income tax is ONLY applicable for those with more than RM100, 000 taxable income.

Refer here appendix 14 under proposal bullet ii

Only those residing in Iskandar and working in some field will get tax 15%.
This is for those working there between 24th Oct 2009 and 31st Dec 2015

Refer here appendix 17 under proposal

This post has been edited by roy918: Oct 24 2009, 11:04 AM