Goods & Service Tax In Malaysia

I don't generally read Chedet, but this piece about the GST had some really good points.

There are all types of taxes out there.

In the UK, the most prominent one out there (apart from the National Insurance) is the VAT (Value Added Tax) which is imposed on most goods and services except the essentials like grocery food.

It's a blanket 20% that is applied on all services like legal services, advertising, photography etc, and obviously the retail industry.

Hot food from restaurants and takeaways are not exempt, and it also costs an additional 20%, which is pretty steep.

This is why many Malaysians who have lived abroad say that additional tax is to be expected as a way of life. What they neglect to mention is that this tax is usually put into improving infrastructure and other public services like transportation.

That, sadly, isn't the case for Malaysia. You and I know that the GST is to repay the 1MDB debt. Theoretically. They're probably spending it at will, and perhaps to even gear up for the coming election.

There is no way of finding out. The Malaysian government doesn't necessarily condescend to particulars.

In the USA, the federal tax is imposed on every single legal resident and expatriate; however some states also have income tax. These are states such as California, Oregon, New York, Maryland.

In the states that don't have income tax, the sales tax is imposed for nearly every item. This means that the burden of tax is carried at a disproportionately higher rate on the backs of the less well-off.

Why?
1. Because poorer people don't get to buy at bulk rate.
2. Because if a person is earning $20,000 a year, he is paying a bigger percentage compared to the person who earns $200,000.

America is in severe decline, and this is manifest in the ridiculous decisions of its citizens -- for instance, by voting an imbecile who is not qualified to make business decisions, much less political ones.

This is what is happening in Malaysia as well. Which is probably why there is much discontent.

Najib has a degree in Industrial Economics from the University of Nottingham. He should know better than others.