QUOTE(Zot @ May 11 2018, 05:14 PM)
I think it is the same depending on how much the rate. The difference between SST and GST is that the SST is charged only once like during importation but with GST the tax is applied on every transaction between seller and buyers.
Therefore, for the SST the tax is included in the price from very beginning and each time the transaction between seller and buyer, the price hike is on profit making. For the GST, the price hike also take place during each transaction due to profit taking but the GST is also gaining and accumulate in amount along the way. If the GST percent is lower, then probably end up the same like SST but probably previous govt is taking advantage on this.
The good thing about GST is that if there is any cheating, like paying less tax or avoiding tax totally, there is still chance tax will be collected during transaction along the way. For SST, once tax escapes during importation, then govt get nothing. This is what I think happened.
Correct me if I'm wrong
You're correct. except one thing, for any transactions between businesses not involving end user GST could be claim back from the government, so essentially there's only one party who is actually collecting GST.
Lets say an items go through a chain like this:
Raw material supplier > Raw material processor > product manufacturers > wholesale supplier > shops > end user
Each of the business in the chain will collect GST, but GST registered company would be able to claim those GST paid back from the government so essentially only the end user is paying it.