In some countries, Goods and Service Tax is good but those countries returns various other benefits to the people unlike Malaysia. So, it’s incomparable.
There are only two reasons on why the Msian government should not implement GST and it’s pretty simple. Some of you might guessed it and some of you might not. Either way, here is why.
1. Low and Middle income groups will be affected badly
Sugar and petrol price increased. It definitely affected the budget of the low and middle income Msians. Looking a little further, when GST is implemented, manufacturers will be taxed as well. This creates a cycle among manufacturers and suppliers. Price of goods and services will go up and money will be a major issue then for this specific group.
2. There isn’t any assurance that the price of good and services will increase
The government are currently very helpless in controlling price of essential items. Take a look at the cost of living in the cities, it has soared to unprecedented levels. Prices of fish and vegetables has gone up quite a few times and nothing was really done by the government to solve it. Can you imagine what would happen if GST is implemented?