Function GST

GST is a consumption tax aimed at streamlining the tax at each level of the supply chain from
the manufacturer or supplier of services to end users (end user).
Acknowledged his identity is not a step that people liked, but the implementation of GST will
increase the efficiency of the tax system as well as tax evasion.
GST also allows the system to become more transparent tax collection. At 6 percent, the
government is expected to collect at least RM30 billion more in taxes each year.
GST is a feature that is synonymous with developed countries such as Singapore. Malaysia and
Brunei are the last two countries in the ASEAN region in the implementation of the GST.

What Effect of GST Six Per Cent To Users

Malaysians will start to pay Goods and Services Tax (GST) with effect from 1 April 2015, as
well as the population in developed countries.
This tax is imposed by 6 percent when they buy goods or services subscribed except for certain
goods and services.
However, many are still confused about the impact of GST on their daily lives. Some thought
they should pay at least 6 per cent of the rate set by the government for any goods and services.
Many people are still confused whether they are with those who opposed the GST is spreading
inaccurate statements.
What will be paid by Malaysia
So, how much should Malaysians pay? Do they have to pay an additional 6 percent of the total
price of goods and services?
In a local news report dated Oct. 21, Executive Director of PricewaterhouseCoopers Malaysia,
Raja Kumaran and consulting company Tim Simpson gave an explanation of the mechanism of
GST in a way that is easier to understand.
If the tax system is viewed more closely, will be available Malaysians had been paying sales and
services tax (SST), which became part of the cost of goods and services without realizing it.
Malaysians have already been informed by 6 percent tax for certain services, such as in hotels
and fancy restaurants. Another consumption tax that had been paid people unknowingly is sales
tax.

"For example, carbonated beverages subject to sales tax of 10 percent, but typically the
manufacturer does not specify the tax bill to the end user. If the drink is said to be priced at
RM11, the actual price is RM10 plus tax of RM1. However, consumers thought they were
buying drinks RM11 instead of RM10 plus tax RM1

GST avoid double taxation

They said SST also cause adverse multiple users.
"Under the existing system takes contih above, if we buy carbonated drinks in the hotel,
consumers not only pay taxes but also additional tax RM1.08 SST 6 percent charged the hotel
anyway," they're in the same report.
However, they said the problem of double taxation is handled in GST taxes paid for hotel owners
is recovered in the form of input tax credits and do not represent the cost to the hotel. Therefore,
under the existing system, the price of carbonated drinks it is RM14.58.
Under the GST, the price of the same drink is RM13.25, a decrease of 9 percent (or RM1.33). So
whether it's drink to 6 per cent more expensive? Surely not. Then the user must understand the
implementation of GST also has many advantages that make them.

Habib Jewels absorbs GST

Habib Jewels Sdn Bhd will absorb the 6% Goods and Services Tax (GST) charged on its
jewellery to maintain its turnover this year. Habib will absorb the 6% GST, so all of their
products will be the same prices after GST, including Pandora and Ice Watch. The absorption of
GST will cost the company about RM20 million to RM30 million this year.
If they turnover is high, they can cover the extra expenditure. The group's turnover was about
RM500 million last year, and is expecting the same amount of turnover for 2015. Going forward,
the group is optimistic on its business, explaining that the GST implementation will not greatly
impact its business as it would continue to offer its products at affordable prices.
However, the group sees the US dollar appreciation and the weakening of ringgit as its biggest
challenge for this year, given the greenback has appreciated by 20%. 'Everything that they do is
in US dollars, including gold bars, diamonds, jewelleries and gemstones. Any of these dealings
are in US dollars, and they are looking at almost 20% increase in the exchange rate.
Meanwhile, on its expansion plans, he said the group will allocate around RM30 million to
RM40 million in capital expenditure to open five new retail outlets in the east coast states. To
date, Habib has 32 retail outlets across the country, including Johor Baru, Selangor, Terengganu,
Kedah and Sabah.