Monday, June 15, 2015

People paying more with GST, admits MOF

12:00PM Jun 15, 2015
Malaysiakini
Those who earn a monthly income of below RM2,000 will fork out RM51.89 or 2.59 percent of their income to pay for Goods and Services Taxes (GST), according to a research done by the Finance Ministry.

This is, in fact, RM20.06 more than what they paid for the previous Sales and Services Tax (SST) which only amounted to RM36.83 or 1.84 percent of their monthly income.

For those who earn RM8,000 a month, they  will fork out RM290 or 4.14 percent of their remuneration for GST compared to only RM169 or 2.8 percent for the SST.

The ministry disclosed the incriminating figures in a parliamentary written reply last Thursday.

In defending the figures, the ministry said: "Based on the research, the perception that the lower income group pays more than higher income group after the implementation of GST isn't correct."

"The higher income group pays more when compared to the lower income group as their expenditures are higher.”

"This has proved that the GST model is progressive," the ministry told Oscar Ling (DAP-Sibu).
~ Malaysiakini

No comments: