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 Every Malaysian have to use MyInvois?, Or else face legal action? So strict?

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Roblox Malaya
post Apr 19 2024, 08:57 PM

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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




Roblox Malaya
post Apr 19 2024, 09:09 PM

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QUOTE(caviars @ Apr 19 2024, 08:59 PM)
As long as not need to pay extra tax. This should be good.

Unlike GST who tax people more because other was evading tax.
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Eh..... you got the entire thing upside down lah.

SST is Sales Tax 10% and Service tax 8%.

Unless you failed in maths, I am sure you know 10% and 8% is higher than GST 6%.

GST has a self-monitoring feature that dramatically cuts down on tax evasion.

Whereas it is very easy for people to evade tax using SST. That's why the total collection on SST is lower than GST even though the tax rates are higher.

SST also has a tax-on-tax compounding effect where the final tax rate we pay is higher - that's why implementing SST again is a reason why prices increased much faster after GE14.
Roblox Malaya
post Apr 19 2024, 09:23 PM

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QUOTE(letitsnow @ Apr 19 2024, 09:19 PM)
Gazilion taxes introduced + MyInvoice basically way of madani try to imitate GST without reintro GST.

I rather they simply bring back GST but call it VAT instead and if people ask just goreng whatever they can by saying this version is better than najib's GST. biggrin.gif

dont worry, ahmad maslan is available to be an ambassador again. let him do the dirty work.

LOL
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every time they introduce one new tax or increase tax, price increase.

So we got multiple times price increase just because Madani don't dare to re-introduce GST.

 

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