Advantage of gst
the advantages included an effective, transparent and fair tax structure besides encouraging a shadow economy to be registered under the GST system.
"It is a transparent tax as a business premises can show the tax imposed in the sales invoice while consumers will know exactly how much tax he or she is paying on the goods bought and services rendered," he told reporters after opening the office of international real estate consultants, Rahim & Co, here today.
Ahmad said the other advantages included the marked reduction in red tape and bureaucracy, lower business cost, nil burden on the lower-income, additional revenue for the country and a competitive export sector.
"Exports will be more competitive as there will be no hidden taxes and the cost of doing business will be lower as GST will not be a cost to registered retailers," he said.
Besides, GST can also lead to diversification of income sources other than income tax and petroleum tax.
Ahmad did not deny the fact that products which attract five per cent tax may cost one per cent more after the implementation of GST.
"But, we must know and understand that there are many products now which attract sales tax of ten per cent and that will come down to six per cent when GST is implemented," he added.
Ahmad also said recipients of the 1Malaysia Peoples Aid (BRIM) would receive a one-off payment of RM300 in addition to the BRIM payment to be made next year to cushion the impact of the Consumer Price Index (CPI) of 1.8 per cent.
The implementation of the GST has a direct impact on the CPI which would take six months to stabilise.-- Bernama - See more at: http://www2.nst.com.my/business/latest/gst-will-have-10-advantages-1.551205#sthash.CVPxeetS.dpuf
A sales tax is a tax paid to a governing body for the sales of certain goods and services
. Usually laws allow (or require) the seller to collect funds for the tax from the consumer at the point of purchase. Laws may allow sellers to itemize the tax separately from the price of the goods or services, or require it to be included in the price (tax-inclusive). The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale. When a tax on goods or services is paid to a governing body directly by a consumer, it is usually called a use tax. Often laws provide for the exemption of certain goods or services from sales and use tax. Conventional or retail sales tax are levied on the sale of a good to its final end user, and is charged every time that item is sold retail. Sales to businesses who later resell the goods are not charged the tax. A purchaser who is not an end user is usually issued a "resale certificate" by the taxing authority and required to provide the certificate (or its ID number) to a seller at the point of purchase, along with a statement that the item is for resale. The tax is otherwise charged on each item sold to purchasers who do not provide such a certificate and who are under the jurisdiction of the taxing authority. Other types of sales taxes, or similar taxes, include:
Manufacturers' sales tax: a tax on sales of tangible personal property by manufacturers and producers Wholesale sales tax: a tax on sales of wholesale of tangible personal property when in a form packaged and labeled ready for shipment or delivery to final users and consumers. Retail sales tax: a tax on sales of retail of tangible personal property to final consumers and industrial users Gross receipts taxes, levied on all sales of a business. This tax has been criticized for its "cascading" or "pyramiding" effect, in which an item is taxed more than once as it makes its way from production to final retai...