this girl cannot afford food adventures anymore. she cries.
right. food adventures are hardly expensive tbh. because most places charge up to 16% per bill for service tax and GST will only be 6% on selected item. but that’s not the issue here; we are getting charged for service tax and very soon we will also be charged with goods tax as well, that’s when most things becomes 6% more expensive and when you sum it all up, bye-bye food adventures. *heart shatters into pieces*
important information about GST: (to read more, click here)
The basic fundamental of GST is its self-policing features which allow the businesses to claim their Input tax credit by way of automatic deduction in their accounting system. This eases the administrative procedures on the part of businesses and the Government. Thus, the Government’s delivery system will be further enhanced.
We need to pay taxes so that the government can finance socio-economic development; which includes providing infrastructure, education, welfare, healthcare, national security etc.
GST shall be levied and charged on the taxable supply of goods and services made in the course or furtherance of business in Malaysia by a taxable person. GST is also charged on the importation of goods and services.
A taxable supply is a supply which is standard rated or zero rated. Exempt and out of scope supplies are not taxable supplies. GST is to be levied and charged on the value of the supply.
GST is proposed to replace the current consumption tax i.e. the sales tax and service tax (SST). The introduction of GST is part of the Government’s tax reform programmed to enhance the efficiency and effectiveness of the existing taxation system.
GST is proven to be a better tax system as it is more effective, efficient, transparent and business friendly and could spur economic growth as well as increase competitiveness in the global market.
Standard-rated supplies are goods and services that are charged GST with a standard rate. GST is collected by the businesses and paid to the government. They can recover credit back on their inputs. If their input tax is bigger than their output tax, they can recover back the difference.
These are taxable supplies that are subject to a zero rate. Businesses are eligible to claim input tax credit in acquiring these supplies, and charge GST at zero rate to the consumer.
These are non-taxable supplies that are not subject to GST. Businesses are not eligible to claim input tax credit in acquiring these supplies, and cannot charge output tax to the consumer.
Supplies made by the Government are generally treated as out of scope supplies. No GST will be imposed on the supply made by the Federal Government and State Government such as healthcare services provided by hospital and clinic, education services by primary and secondary school including tertiary education, issuance of passport by the Immigration Department, issuance of licences and permits by the Road Transport Department and etc.
now, how does GST affect me? I WILL GIVE YOU A LIST.
- technology. BECAUSE my phone, macbook pro, and ipad are for work!!
- makeup. SIGH
- sanitary pads. DO I EVEN NEED TO EXPLAIN?!
- car wash. okay la this one not so bad, but still.
- food adventures.
- books and DVDs.
- MEPS TRANSACTIONS, ONLINE BANKING TRANSACTIONS
- GROCERIES (not me, but my mom). BECAUSE there’s 6 of us in the family. Thankfully fruits and vegetables are exempted. (more info here)
what is zero-rated/exempted?
- fruits and vegetables
- panadol (PHEW)
- chicken, garlic, and onions. rice, cooking oil, salt, ginger, EGGS, PORK (KAY CAN SURVIVE LIAO)
- white/wholemeal bread
- COFFEE AND TEAAAAAA (under dry goods la. like, not the hipster cafes one)
- utilities! like water supply, electricity
- healthcare services
- school fees / educational services
- public transport services and TOLL
okay la. the only think i need to stock up is sanitary pads and makeup. i might get a new phone as my current one is slowly dying on me. other than that, if i just stay at home on my off days i think i can survive the GST. like, i don’t want to think that i’m not affected that badly as i’m still living with my parents and have my own income and all, but i’m not home more than half the time and eating out is a must for me due to the nature of my work (long hours, always running around with little time for breaks in between).
so now if you guys want to survive GST, know what affects you the most. plan around your needs and do so monthly with your income. parents especially will need to take note of:
- baby needs, if you have infant(s)/toddlers in your family
- stationeries for schooling kids. school uniforms too.
- toiletries for the family (soap, toothbrush, toothpaste, shampoo etc)
- tuition fees.
- haircuts for your kids.
- new baju and seluar for your growing kids!!
if you need to stock up anything, do so now. my mom just stocked up white paper for printing. i have yet to do my part. ngerh.
how la like this, right? like that lorh. everyone is wishing and hoping that we won’t have GST. but you know what, educate yourself about what can and cannot be done, plan your meals/travels etc., and survive one week at a time. the rich may continue to be richer but we middle class people must learn how to be smart!! GAMBATEHHHHHHH
here’s to wishing everyone the best in their GSTcalypse survival skills!!