According to Prime Minister Malaysia -Datuk Seri Najib Tun Razak, GST or Goods and Services Tax will cost RM 222 million to ensure the effective implementation of GST system in Malaysia. The total cost would cover GST computerised system (RM139 million) and GST operational cost (RM83 million). After successfully implemented, Malaysia Government will also need to pay GST annual maintenance cost (RM 8.5 million) annually.
If you are not aware of Malaysia GST, please read GST – Malaysia Goods and Services Tax in Year 2011. For you info, GST (Goods and Services Tax) is the new Malaysia Tax system to replace current Tax System (SST) or Sales and Services Tax. Based on the calculations by Finance Minister II, new GST will generate additional RM 1 billion income and save businesses RM 4 billion. Currently, government was generated RM 12 billion from current tax system (SST).
My thoughts on GST Malaysia 2011
Since new GST Malaysia can bring better revenue to the Government, and Government will have more money to develop and contribute to critical sector such as education and hospital facilities. It’s a good news for all people of Malaysia. However, I also concerned about the implementation of GST that may increase the burden to people because most of our Malaysian’s income have not reach the satisfactory level to be imposed with GST. GST system will be implemented in the mid of 2011. Please share your thoughts on Implementation of GST Malaysia.