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 GST 7%, included into property buying too?

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SUSwhitesabre
post May 21 2013, 04:36 PM

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Yup to pass an bills/laws, simple majority will do. So, GST actually has already passed. However, they needed to wait until after GE 13. Implementing it before GE 13 spells doom for BN. Only those stupid will vote for BN.

On another note, the opposition can still challenge the law in court. They can bring it up to the high count upto federal court. Having said so, imagine the impossibility of the fed court supporting the oppositions. To all, spend less on anything. GST is totally different from SST. GST is imposed on ALL LAYERS of goods and services, while SST is imposed on sales point. Once GST implemented, petrol will increase, then transportation will increase. Once it comes to consumers, it's no more 7*, but 7% on increasing balance on every layer.

Say a fisherman catches fish. He needs petrol, which has 7% on it. He catches and sells to middle man, charges anoda 7% on, say RM100*7%. Then comes to market, sells to those market fish sellers, anoda 7% gone. Don't forget about petrol to transport. Then they transport to fish market, another 7%. Lastly to us, ANOTHER 7%. If u do the maths, it's more than 6x of 7%. Haha
SUSwhitesabre
post May 21 2013, 04:38 PM

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Guys, and not to forget the markup on selling point. Once u add up, you will notice 3k a month on salary will get u NOWHERE. lol
SUSwhitesabre
post May 22 2013, 10:08 PM

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QUOTE(EddyLB @ May 22 2013, 06:35 PM)
Let's use numbers, maybe easier to understand

Supplier A sells stuff to Supplier B --> price RM100 + GST RM4 = RM104. Supplier A remits RM4 GST to Customs

Supplier B re-sells the same stuff to Supplier C --> RM110 + GST RM4.40 = RM114.40. Supplier B claim RM4 from Customs. So, nett pay to Customs is RM0.40

Supplier C re-sells the same stuff to Consumer --> RM120 + GST RM4.80 = RM124.80. Supplier C claim RM4.40 from Customs. So, nett pay to Customs is RM0.40

Total GST collected by Customs is RM4.00 + RM0.40 + RM0.40. Which is the eventual selling price RM120 x 4% = RM4.80.

Therefore, it is not "layer on layer". The final consumer actually pay the GST. Business have no reasons to hike price. But in actual fact, some business will take opportunity to profit I think  laugh.gif
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That's y I said it's layer on layer. Due to GST, there will be a charge on every goods sold. For supplier B, lets say he sells at RM110 like u said. However, previously, he buys at RM100, now since RM104, he will need to charge more to cover his losses of RM4. Yes you will say he can claim back. However think it this way, claiming back will be a later issue. Do you think the Customs will remit the money IMMEDIATELY? Claiming back will take at least 2-3 months or maybe more.

See those people claiming for tax refunds from IRB. Some takes up to 2 years just to get RM100 from IRB. Now, we're talking about thousands in GST paid to the Customs. Do you think they can get back the money as soon as they need to pay? Remitting will be easy, but claiming it back is like climbing mount everest. So to cover for the temporary difference in loss due to GST, they will then charge it to Supplier C. So it's definitely not RM114.40 as you said. To cover for the temporary difference, they will definitely sell at RM118.40 to Supplier C since they paid extra GST RM4 to Supplier A to remit to the Custom.

Dude, it's a rolling ball effect. For those who said I dun understand this GST system, you're definitely too naive. You think you guys understand when all you guys are doing is simple maths calculation. The effect is more than just simple maths. Think it this way as kicking a ball. Everyone wants it, but only one player out of 22 can get it. Same like GST, everyone wants to claim, but how fast can u claim it back? Sooner or later, it will be applied layer on layer, like charges on increasing balance.
SUSwhitesabre
post May 22 2013, 10:22 PM

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Then there is also the, like u guys said, input and output tax. Do u know input taxes cannot be claimed? Input taxes will be like, lets say we rent a unit of shophouse for our business activity. Rental, from the owner point of view, will charge service tax. Lets say purchase of business equipments like kitchen stuffs and so on, everything now is subject to 4%. And sadly, we cannot roll the ball to consumers for this 4% because it is not for resale purpose. So, we will impose this 4 on the goods we produce as cost and charge it to end users or the next layer's group.

Remember, GST is not only output tax, but input tax as well. When input gets affected, is will indirectly affect output. Thus, at every layer's input, when it cannot be translated to the layer, it will become an indirect cost added onto output. In the end, don't u guys think it's layer by layer thingy? Do you guys think buying and selling is that easy as Supplier A sells 100 to supplier B and charge 4%?? Hello, how about the boat and so on. Said on MoF website that only essential daily goods not subjected to the GST. But if input cannot be passed onto the next layer, it will become an indirect cost on the selling price of output.

 

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