Good Service Tax - in the eyes of the consumer and end users - Nik ZafriWe all have heard and know that the Good Service Tax will be introduced either 2011 or 2012. Already, not only the reactions are coming from business/corporate entitites, accountants, auditors, SSM, Customs, Banking and Financial Institutions, Ministry of Domestic Trade & Affairs, FOMCA, political parties - both opposition/government etc are - both positively and negatively, there are also other entitites as well; naming some - SMIs, cottage industries, traders, sundry shops, retail, suppliers, end-users, consumers, etc. are also having their very own opinion as well - and some are already noting this issue by making some 'things dissapear' and hoping that a higher price (controlled price in the end) will be imposed so that they can make some quick buck.
I'm not against anything nor I'm not blaming anyone or any party for this but I think once again, information is not well-disseminated.
Having said that, I'm not going to talk about GST as there are so many sources on the internet but based on my observations, here are my conclusion : (and please don't only react or response or counter comments to my notes over here in facebook cos' not everyone is reading them)
I think the Government should do some explaining on the interrelationship for the following issues:
a) Which party/What product will be absorbing or not absorbing the GST?
i) Who will be bearing the ultimate cost?
ii) Where is the end of the 'absorption'?
b) Is there any special list or directory of 'GST incurred products/services or non-GST ones' that we can refer to?
c) There will be major changes in the accounting system - yes, some say, it's minor but I doubt that very much - due to this 'new counter-reference list to the non GST and GST incurred products/services' that needed to be incorporated in the accounting system (softwares and applications especially) - thus, this factor will definitely gave some major impacts on the bank and financial insitutions, accounting sofwares/system/application development in Malaysia, various Businesses etc.
Will 2 years or 1.5 years from now be adequate?
d) The withdrawal of sales tax and replaced by GST,
e) The withdrawal of subsidy on core consumer (food) products
f) Inflation or Deflation?
How will this 6 things fit together.
I think THIS is what people are concerned now.
Here are my soft reminders - you can lend your ears or you can choose not to. Please guys:
a) Don't ask the people to attend some seminars or conferences on GST (not many can afford anyway) -perhaps seminars are good for accountants,auditors,bankers, CEOs etc.
Have someone to come down to the field and kampungs to explain in laymen terms what is this GST is all about...it's not so tough to send down someone - isn't it?
b) Find a way not to make the price or GST compliant accounting systems applications/softwares much more expensive - I know this is 'good money' for you but consider the quantity of business you're going to get - so some discount should in place?
p.s. to many people - they would always say this :
"aaah..another tax? gosh" :-)