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Gst Implementation

In: Business and Management

Submitted By nurfazlina92
Words 504
Pages 3



Goods and Services Tax (GST) is an issue frequently being discussed recently in Malaysia, this happen when the government announced to implement the GST. The national budget of Malaysia 2014 had been discussed in parliament on 25 October 2013 proposing that GST would be implemented commencing on 1 April 2015 at 6% rate. GST, is also known as the value-added tax (VAT) in many countries such as Singapore, Hong Kong, United Kingdom and Canada. Currently, more than 160 countries have implemented GST. Tax is recognized as one of the main sources of government’s income. GST has been raised by the Malaysia Government as an approach to reduce its deficit.

SMEs are defined as a business enterprise in the manufacturing sector with an annual sales turnover not exceeding RM50million or with less than 200 full time employees, while for the services sector enterprises the corresponding number are RM20 million or 75 workers. Any businesses with annual sales of taxable turnover exceeding RM500,000 is mandatory registration with Royal Customs Malaysia. With registration can allow the business owners to claim the GST paid on the purchases or inputs which will otherwise become a cost.


The purpose of the Goods and Services Tax implementation is to solve the economics problem, this including inflation, turmoil and also unemployment. With this GST can enhancing the economic growth of the country. The huge amount of GST collected by government, the government can manage the country with more effective and efficiency. The government can use the GST collected to developing countries with build any infrastructures such as schools, transportation and hospital.

However in Malaysia, GST is about...

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