QUOTE(plumberly @ Apr 12 2013, 10:31 AM)
Thanks.
Saw an article in the newspaper some months ago and I wrote to the author to do a comparison in money terms for a typical family for the 2 cases - with GST and without GST. The author did not have all the data to do the comparison.
Stating that certain food will not have GST is not covering the whole true picture. E.g. the amount of "freed" taxes there may be less than the new GST taxes we pay for other things.
Overall, we save money with GST, right? If we save money, govt will be getting less taxes. I don't think that is what govt wants.
Even with capturing taxes from people who are not paying or paying little taxes now, I still think majority of M'sians will be worse off with GST.
Cheerio.
I think the main objective is to get those who did not pay income taxes to pay for taxes.
Based on 2011 statistics, only 10% of the working population pays tax. That means 9 out of 10 people working outside don't pay tax. (referring to income tax)
That is unfair, to me and to you, who are paying for income taxes. Those who has been paying income taxes will see a reduction on taxes payable (from savings on income tax reduction) and those who didn't will see an increase their spending amount (due to GST).
That's how the concept works. But I am with you since I don't see much savings from GST implementation and on reduction in income tax.
And the 4% probably is a sugarcoating rate. They'll probably increase it to 7% or 10% sooner anyway.
This post has been edited by Icehart: Apr 12 2013, 10:49 AM