21/03/2015
With GST arriving in less than 2 weeks, I'm sure everyone who lives in Malaysia feels quite anxious. Well, I do.
Based on an article from The Star: http://www.thestar.com.my/Business/Business-News/2015/03/14/What-will-be-taxed-with-GST/?style=biz, GST will be charged at every stage of the supply chain (except basic necessities).
What does this really mean to my household?
- Grocery cost will increase. Most fresh food like vegetables, fruits, meats and seafood are GST exempted but processed food like tofu, coconut milk, dried food, etc are subjected to GST. Please go to this page for more details:http://gst.customs.gov.my/en/cp/SiteAssets/GST%20List%20of%20Sundry%20Goods%20(15%20JAN%202015).pdf
- Our electricity exceeds the 300 unit threshold and thus will be subjected to GST
- Cable TV, mobile phone and home phone bills will be subjected to GST. Currently both MAXIS and ASTRO have been charging 6% government service tax while TM doesn't explicitly state any tax on the bill. This means 6% GST will replace the government service tax on MAXIS and ASTRO while our TM bill will increase by 6%. For more details, you can check this page:http://gst.customs.gov.my/en/rg/SiteAssets/industry_guides_pdf/Revised/Guide%20on%20Telco%20BI%2019%20July%202014%20G5.pdf
- Cost of dining out will increase. Restaurants will replace the existing 6% government sales and service tax with GST. But I expect they will increase the price of food and beverages too because the cost of their ingredients have increased
- Taxi fare will increase. Although taxi fare is exempted from GST, Land Public Transport Commission (SPAD) has announced to public that they will increase taxi and bus express fare. Here is the link for GST on transport:http://gst.customs.gov.my/en/rg/SiteAssets/industry_guides_pdf/Guide%20on%20Travel%20Industry%20-10082014.pdf and for adjusted taxi fare: http://www.thestar.com.my/News/Nation/2015/03/19/Taxis-express-bus-fares-to-go-up/
All in all the following months will definitely be challenging for all of us. So what do you think about the coming GST? And how will it impact you financially?
KUALA LUMPUR: Goods and Services Tax (GST) will be implemented effective April 1, 2015 and the rate is fixed at 6%. Sales tax of 10% and service tax of 6% will be replaced with GST.