GST is part of Malaysia ETP action plan to curb the ever rising national debts which has exceeded the threshold of 55% of country's annual GDP. It has to be done as many Malaysian are earning low to medium incomes that prevented the conventional "progressive tax" to work effectively, hence causing insufficient taxes to be collected to finances the entire government expenditure.

Malaysia has initiated ETP, which is driven by PEMANDU, headed by Dato' Sri Idris Jala, former CEO of MAS Airline, to overcome country worst nightmare, which is facing bankruptcy in a not too distant future.

Malaysia has a approximately 28 million people and it is estimated that more than 40% of these population are below 25 years old, 5% are above 55 years old and nothing more than 4% is jobless. Majority of these people do not pay taxes. When the progressive tax failed miserably, Government turns to these people in the above mentioned categories for solutions.

Despite living without "active" income in Malaysia, the only way the Government is able to make gain from these people is by introducing the "blanket tax", which is also known as GST.

Besides introducing GST in Malaysia ETP, Government is also reducing subsidies periodically from the year 2010 till the end of 2014 to as to promotes savings.


By reducing subsidies to these goods and facitilities, it will also promotes the rise in good and services price tags.

Good luck Malaysia!

This post has been edited by public_mutual: Jul 8 2013, 11:38 AM