A recent article about MIER’s assessment of GST as well as my personal thoughts here: MIER: Bring back GST as it is fair to all walks of life. Many earlier articles which I have written about GST in archives. Just need to search keyword as GST and you could read all of them. So, is GST going to have some announcements in the upcoming Budget 2020? From what our Prime Minister Tun Dr. Mahathir’s latest sharing, it’s a NO. Will the government be having more thoughts about GST and SST? The answer is yes, it’s now possible.
Article in thesundaily.my Prime Minister Tun Dr Mahathir said that the government will study the goods and services tax (GST) again if the people wants it back. He said, “If the people think it’s better, we will study if GST is better than the SST (sales and services tax).“ It will however not be included in Budget 2020.
He was responding to earlier comments by the Malaysian Institute of Economic Research (MIER) chairman Tan Sri Kamal Salih that the GST should be brought back in Budget 2020 but at a lower rate of 3%. Briefly, GST was 6% beginning 2015 but it was scrapped by Pakatan Harapan after it became the new government after GE14. Full article here: Article in thesundaily.my
My personal thoughts remain the same. GST is by far more popular in the world today versus SST. There must be strong reasons. I agree there’s no such thing as a perfect tax. However, if we are really looking at widening the tax revenue so that we have more funds to assist the B40 households for example, then GST is much more suitable than the SST.
There’s also no such thing as prices becoming lower whether it’s GST or SST. Prices will only be lower with sufficient enforcement as well as the people’s choice. Buy from shops with prices which are fair. If we continue to allow prices to increase every year, then whether it’s GST or SST, prices will keep going up. Vote with our purchasing behaviour lah.
Just look at the property market today. During good times, are you sure the developers will be willing to give good discounts? To join Home Ownership Campaign (HOC)? In the secondary market, during good times, are the owners open to price negotiations? It’s never been GST or SST yeah when it comes to prices. It’s demand vs supply and who’s more powerful. If supply is too powerful, the government should step in. Period. So, IF any politician were to tell us that prices will come down simply due to SST or GST or whatever T, just laugh at them. Cheers.
Next suggested article: 4 reasons why some people are waiting for the perfect property