http://loanstreet.com.my/learning-centre/G...aysia-Explained

What do you guys think about this? Especially about its potential impact on raw materials producers like farmers and agriculturist.

I'm not sure if I'm understanding it correctly, but it seems as though raw materials producers are at the short end of the stick... this despite being classified as "zero-rated supplies". I wonder if the taxes on items such as fertilizers, machines, sprinklers etc. all can be claimed back as input taxes, and still the producer has to pay 6% GST to the government anyhow for every item sold.

So I'm just thinking, if say a farmer produces 10mt of vegetables, and sells them on to a manufacturer or retailer at RM10/kg. The farmer pays RM0.60 per kg as GST, but the retailer pays no tax at all, and in fact can claim back the RM0.60 the FARMER paid for GST as input tax. In addition, the farmer cannot claim back the GST incurred on them for the farm inputs. So then, that means that farmers are going to be doubly impacted, no?

Hope somebody here can shed more light about this.... I'm rather confused about it all, and the government websites are not clear about such things.