Malaysians are not taxed enough!?

Malaysians are not taxed enough!?

Anyone here felt that they pay too little tax? I would agree and I am also very happy that if I earn more, I should pay more in tax. I know, when one is a businessman, spending is sometimes better than not spending and thus having to report high profits and get higher taxes. Well, there is this remark that the government is not taxing enough. There are suggestions on how our government can get higher tax revenues too. GST was mentioned. Progressive tax was also mentioned versus a fixed regime too.

Article in thestar.com.my. PETALING JAYA: An economic adviser to Prime Minister Datuk Seri Anwar Ibrahim has called Malaysia’s declining tax revenue-to-gross domestic product (GDP) as “strange”, considering the fairly strong economic growth enjoyed by the country.

Runchana Pongsaparn, principal economist of the Asean+3 Macroeconomic Research Office, said that Malaysia’s tax revenue-to-GDP is lower than most countries in the region.

“What makes it worse is that the ratio is declining, down from 14.6% in 2011,” she said, although she noted that China, Vietnam and Thailand are also facing a decline. Another cause of concern is low contribution from Malaysia’s consumption tax such as the sales and service tax.

“Only 2.8% of GDP is actually from consumption tax, which is definitely the lowest among Asean peers. Do read the comprehensive article here: Article in thestar.com.my.

GST is needed lah, stop pretending there are ‘better’ taxes around

All the countries Malaysians love to migrate to, all the countries Malaysia always compare our country to and all the countries are already likely to be using Goods & Services Tax. It could be called a different name in other countries but it has to be implemented because it’s far easier to use and far better to combat against people ‘running away from paying tax.’

I know, you want to say but the government needs to use the taxes better. Well, using it better depends on how you vote. It’s different matter from a comparison of the two different types of taxes; Sale and Service Tax (SST) versus GST. The further this is delayed, the more different ways Malaysians would be taxed because the government’s revenue remains very low versus GDP…

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