KUALA LUMPUR: Sales Tax and Perkhidmatan 2.0 should become a revolution to pleasant people that are bored with Goods and Service (SST)s (SST) Tax burden , said Datuk Tan Kok Liang, a chartered accountant and licensed tax consultant.
He said, although SST is tax which already usual - days towards the tax executive for the second time have been filled with controversy and confusion.
There is rumour states that SST increases tax burden to 16 percent, namely sales tax combination of 10 percent and service tax of six percent.
"Presumption that '10 percent and six percent equivalent to 16 percent' probably start when GST replaced with two separate taxes, namely sales tax and service tax, which led to rate proposal of both taxes should be consolidated.
"However, sales tax (in 10 percent) and service tax (in six percent) respectively own scope that is very different. Sales tax include manufacturing goods and items imports while service tax scope only covered service.
"Legally and policy, it is whether 10 percent or six percent, neither at the same time(acknowledged, sales tax to particular item is five percent)," said Tan in article titled"Jualan Cukai and Perkhidmatan - Is 10% and 6% Equal to 16%?
But, not six percent or 10 percent, he said, end tax burden is number 'weighted average' located between continuum zero percent, six percent and 10 percent - depending onrate from ‘goods’ imposed respective tax in zero percent, six percent and 10 percent.
However, he said, SST system has internal weakness that is it sometimes may be causing transaction imposed various disclosures to tax.
"The multiple tax, known as 'cascade tax' or 'effect cascade' and indirectly increase price of certain goods that affected, make him more expensive (and less competitive terms of pricing) with every SST registrar additional along supply chain," said Tan.
According to him, good luck authorities realize uproar that "cascade tax" can increase the price. From various methods that they use to minimize "effect cascade", three of them should be mentioned.
First, Tan said, government increase SST registration threshold for restaurant to RM1.5 million a year (darpadai threshold default RM500,000) to minimize SST's registered restaurant number.
"This does not destroy but it reduce a lot opportunity to cascade tax along food preparation chain.
"After that , to avoid double taxation, law identify (specifically) kind of people that can imposed by SST. For example, only manufacturer is called 'people who can be taxed' , not wholesaler or retailer; Therefore, avoid cascade tax along distribution chain.
"And third, total goods incurred road tax is about 6,400 compared to 11,197 under GST (represented about half) while services group that is narrower under service tax," clear Tan.
According to him, although phrase "10 percent and six percent equal to 16 percent" inaccurate legally, problem description 'tax cascade' it is reasonably accurate thereby instruktif.
"There is situation where double taxation or in fact three times can come about - a reminder frighten that no tax policy (GST or SST) which have no problem," he added.
search by : Wan Arlindiana Ruzaini Wan Ali Megal
Date of Input: 20/09/2018 | Updated: 20/09/2018 | wanarlindiana
Office of Deputy Vice Chancellor (Industry and Community Relations)
Universiti Putra Malaysia
43400 UPM Serdang