Advantages of GST on consumer compare with Sales Tax

First and foremost, the advance of GST on consumer compare with sales tax is Fair Pricing to Consumers. This is because GST eliminates double taxation under SST. Consumers will pay fairer prices for most goods and services compared to SST. In addition, retail prices will come down as GST enclosed indirect taxes and cuts out the cascade of multiple taxes that products bear, lowering production costs.

This example is posted by Martijn Koning, posted date is JULY 18, 2018, After that, the advance of GST on consumer compare with sales tax is Greater transparent. We are all know, according former prime minister Datuk Seri Najib Razak say the GST is a more transparent in the taxation system. Such as, Royal Malaysian Customs Department (RMCD) will exactly know whether the good and service to tax and the price stated conform to the specified rates. Moreover, in Malaysia GST ACT say every supermarkets must be displayed a notice to all consumer about the good with GST and all the Tax Invoice must be write GST register number in Tax Invoice. This way can surely to help customers identify the goods with 6 percent GST in supermarkets and know who is a GST register person in Malaysia.

Disadvantages of GST on consumer compare with Sales Tax

Furthermore, the disadvantages of GST on consumer compare with sales tax is GST will mean an increase in operational costs In fact, all the business will now have to employ tax professions to be GST-complaint and need prepare the costs to improve employee’s GST knowledge. This will surely increase costs for small business as they will have to put in the additional costs to hire the experts and need to put in the fee to trainee the employee. When the operational costs increase, the price of goods must be increase in same time.

Last but not least, the disadvantages of GST on consumer compare with sales tax is GST will mean an increase in price for goods and service. This is because all the operational cost and material costs got charged GST 6 percent, but for this GST 6 percent can be claim back for GST Input Tax, now still have the company include this GST 6 percent in cost. This may cause the price of goods and service increase and cause consumer need more money to pay the fee of goods and service in their life.