Tuesday, March 17, 2015

GST rates of other countries and Malaysia's compared

IThe final countdown is on. By April 1, 2015 we will join the 90% of the world's population to 'enjoy' the much debated Good and Services Tax.

The concept of GST (Goods and Services Tax) - not to be mistaken for the current Government Sales and Service Tax, GST - was invented by a French tax official in the 1950s. In some countries it is known as VAT, or Value-Added Tax.

Today, more than 160 nations, including the European Union and Asian countries such as Sri Lanka, Singapore and China practice this form of taxation. Roughly 90% of the world's population live in countries with VAT or GST.

Here are some of the tax rates of countries around the world who have implement GST or VAT:

Table 1: Selected nations around Malaysia and other Commonwealth countries.

Do I agree with implementation of GST in Malaysia?

It doesn't matter. Really. What I agree or disagree is not important; it is going to happen regardless.

I have this to say though:-

To the people who manage the tax money we pay: Just be prudent, transparent with the expenses. Put the money to good use. 

To fellow consumers: If you think tax is bad, then you should also be against the current taxation system, especially individual tax. No one want to pay tax, right. Me included.

But since it is legal requirement, we might as well share the burden. All of us

No comments: