Prices for new cars are generally expected to come down by between one and three per cent after the implementation of the Goods and Services Tax, GST.
However, the gains could be offset by higher prices of imported auto parts, due to foreign exchange factors.
Customs Department GST Director, Datuk Subromaniam Tholasy pointed out while there will be some savings, the biggest cost for cars is not the tax component, but the exchange rate.
Furthermore he added, no one will know what the exchange rate will be next year, as it determined by the market forces of supply and demand.
He explained that auto components are mainly imported from Japan and if the yen appreciates against the ringgit, the savings could be much less as the auto components would cost more.
The Sales and Services Tax of 10 per cent will be abolished on April 1st next year, and replaced with the GST, which is set at six per cent.
2. Understanding GST: Malaysia Budget 2015 , Bajet 2015,
Starting April 1st, Malaysia will implement the Goods and Services Tax, or better known as GST.
When tabling Budget 2015, Datuk Seri Najib is expected to announce the list of items and services which will be included and exempted from GST.
Also a one-off cash aid following the implementation of the new tax regime.
There has been growing pessimism in regards to the GST since its announcement in the 2014 Budget and much was derived a from lack of understanding on what the tax is all about.
Sales and Service Tax or SST was implemented since 1972 and said to have many weaknesses.
Among them cascading tax, pyramid and double taxation tax erosion and leakages through transfer pricing and other means resulting in higher prices of goods and services.
The GST of six per cent rate next year will undoubtedly help rationalize the tax collection in the country and subsequently shrink the fiscal deficit over the coming years.
Analysts believe that Malaysia's current tax base, is in fact too narrow, while there is high dependency on income tax for both individuals and corporate.
Out of some 30 million people in Malaysia, and about 12 million people in the workforce only less than two million people actually pay income tax.
With GST, the taxing system will be more transparent whereby consumers will be more cognizant of pricing, with the amount of GST clearly reflected in the final price on receipts and invoices.
The appeal of GST is that it is a broad-based tax which tax on the amount of consumption.
As such for the wealthy households which undoubtedly consumes luxury or more expensive goods, the GST automatically taxes them most, rather than the lower income group.
3. Budget 2015 Malaysia: FUEL EXEMPTED FROM GST
The retail sale of RON95 petrol, diesel and LPG will be exempted from the Goods and Services Tax, GST which will be implemented from April 1st.
Datuk Seri Najib Tun Razak said, this is to ensure that the implementation of the next tax system next year, will not burden the rakyat.
Through this measure, Datuk Seri Najib said consumers and targeted groups will not have to pay GST on the purchase of RON95 petrol, diesel and LPG.
As for elecriticity consumption, the government will increase the GST exemption rate.
With the implementation of GST he said the government's revenue was estimated at 23.2 billion ringgit.
However, several goods amounting to 3.8 billion ringgit, have been exempted from GST.
Of the total, 4.9 billion ringgit would be channelled back to the people through assistance programmes such as the increase in 1Malaysia People's Aid, BR1M.
4. Malaysia Budget 2015 : Higher BR1M Payout Nexy Year
The government continues to provide aid to the low and middle income groups to help them cope with the rising cost of living and subsidies reduction.
These groups are categorised of those with household earnings below four thousand ringgit, and singles above 21-year old with less than two thousand ringgit monthly earning.
The Prime Minister said these aid would benefit the targeted groups as a form of segregation from the funds saved by the subsidies reduction.
As a result of revenue collected from GST and subsidy reduction, the 1Malaysia People's Aid or BR1M cash payout will be increased to 950 ringgit from 650 ringgit, for household earning below 3,000 ringgit.
However, it will be paid in three instalments of 300 ringgit each between January to September next year.
Single 21-year old individuals with income not exceeding two thousand ringgit will receive 350 ringgit, from 300 previously.
The government will also replace the group takaful insurance or i-BR1M with Family Bereavement Scheme, allowing the next-of-kin to receive one thousand ringgit upon death of BR1M recipient.
Students will also receive 100 ringgit cash aid in January next year, to help parents in the low income group.
The 1Malaysia Book Voucher, BB1M worth 250 ringgit will also be continued for some 1.3 million students nationwide, costing 325 million ringgit.
Monthly cash aid for fishermen will also be increased from 200 ringgit to 300 ringgit.
And an allocation of 1.2 billion ringgit has been put aside to aid Malaysian with disabilities, poor families, children, and the elderly.
To help cope with the rising cost of living, an additional 20 1Malaysia Shops, KR1M, which sells basic household items, will also be built in the Peninsular.
while for those staying outside Kuala Lumpur, intercity bus services will be provided with a 30 per cent discount, from three major location, namely Rawang, Klang, and Seremban.
5. Malaysia Budget 2015 : MORE ITEMS, SERVICES EXEMPTED FROM GST
The government has also agreed to widen the scope of food items and services which will be exempted from GST.
The items include fruits, breads, coffee, yellow mee, medicines, reading materials and newspapers.
He also assured that prices of 532 items or 56 percent Zero GST items will be reduced up to 4.1 per cent.
Among them medicines, electrical appliances and household furnitures about 354 goods and services may experience some price increase but less than 5.8 per cent.
No comments:
Post a Comment