Apr 20 2024, 06:47 AM
QUOTE(Roblox Malaya @ Apr 19 2024, 08:57 PM)
govt want to do e-invois to collect more taxes.
If implement GST then don't need to implement e-invois.
Jibby explained this a long time ago in 2018 after GE14.
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In a lengthy Facebook post today, former prime minister Najib Abdul Razak warned of more tax evasion and other illicit economic activity once the sales and services tax (SST) is reintroduced.
Najib said he introduced GST during his administration not just to increase federal revenue, but also because of the comparative advantages of the tax.
Otherwise, he added, all he would have had to do was raise SST, corporate tax, income tax, or appropriate funds from Petronas to raise money.
The former premier maintained that GST was introduced to make Malaysia's economic structure more stable and competitive.
Although GST does raise more revenue that the SST it replaced, he explained, it is not simply because the tax is imposed on more items – since it has nearly as many exemptions as the SST about to be reintroduced.
Instead, he said the increased revenue under GST is due to a reduction in tax evasion and avoidance. This is because it allows for taxation on the black economy, illicit capital outflows, migrant worker remittances and the tourism industry.
“It is here where a large portion of the tax revenue came from. Under the sales tax system, manufacturers or importers could set up a distribution company that acts as their proxy, and then sell products cheaply to the distribution company," his Facebook post read.
“The sales tax is only applied on manufacturers and importers, and this allows them to declare a lower sales tax.
“Or, a shop that is supposed to collect service tax could keep the collections, and not return a large portion of it to the government. Unlike GST where they could claim input tax credits, there is no incentive under SST for them to declare the true amount.
“Under GST and a self-monitoring system, the sales price from the distributor to the end-user is monitored, so tax evasion could be reduced."
“We would also lose our economic capability to withstand a recession or a sharp fall in prices of the commodities we export, without falling into an economic crisis because we no longer have GST to act as a buffer."
Although no longer in a position to stop the government from abolishing GST, Najib said, he still wants the government to know the consequences that the rakyat and the country will face in coming years.
https://www.malaysiakini.com/news/437885
this is just pure bullshit.If implement GST then don't need to implement e-invois.
Jibby explained this a long time ago in 2018 after GE14.
---
In a lengthy Facebook post today, former prime minister Najib Abdul Razak warned of more tax evasion and other illicit economic activity once the sales and services tax (SST) is reintroduced.
Najib said he introduced GST during his administration not just to increase federal revenue, but also because of the comparative advantages of the tax.
Otherwise, he added, all he would have had to do was raise SST, corporate tax, income tax, or appropriate funds from Petronas to raise money.
The former premier maintained that GST was introduced to make Malaysia's economic structure more stable and competitive.
Although GST does raise more revenue that the SST it replaced, he explained, it is not simply because the tax is imposed on more items – since it has nearly as many exemptions as the SST about to be reintroduced.
Instead, he said the increased revenue under GST is due to a reduction in tax evasion and avoidance. This is because it allows for taxation on the black economy, illicit capital outflows, migrant worker remittances and the tourism industry.
“It is here where a large portion of the tax revenue came from. Under the sales tax system, manufacturers or importers could set up a distribution company that acts as their proxy, and then sell products cheaply to the distribution company," his Facebook post read.
“The sales tax is only applied on manufacturers and importers, and this allows them to declare a lower sales tax.
“Or, a shop that is supposed to collect service tax could keep the collections, and not return a large portion of it to the government. Unlike GST where they could claim input tax credits, there is no incentive under SST for them to declare the true amount.
“Under GST and a self-monitoring system, the sales price from the distributor to the end-user is monitored, so tax evasion could be reduced."
“We would also lose our economic capability to withstand a recession or a sharp fall in prices of the commodities we export, without falling into an economic crisis because we no longer have GST to act as a buffer."
Although no longer in a position to stop the government from abolishing GST, Najib said, he still wants the government to know the consequences that the rakyat and the country will face in coming years.
https://www.malaysiakini.com/news/437885
Fact check time: which party first starting the journey for e-invoice? It was BN
https://forum.lowyat.net/topic/5316076
This post has been edited by vhs: Apr 20 2024, 07:06 AM
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