Malaysiakini: The government argues that the GST rate will be lower than the SST and so, prices will drop and even the poor will benefit from this.
Tony Pua: The SST does not cover all products. That is why the GST is to be introduced, it covers more things. The government will not introduce a new tax if it collects less.
The argument that the 10 percent will be brought down to four percent does not hold water. The estimate is that, with the current system, they are collecting about RM11.7 billion. Under the new system, around RM13 billion, so (the GST will collect) an additional RM1 billion plus.
Besides the RM1 billion plus, there is the impact on the rakyat. (Second Finance Minister Ahmad Husni Hanadzlah) has said that exporters will gain. (Exporters) will save RM1.4 billion because they don't need to be taxed as consumption is overseas.
They are exempting professional services from charging service tax so that's a saving of RM4 billion for companies. Added up...that's a total RM6.7 billion on the people.
Full story here.
