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SST 2.0 need to be a revolution , said accountant

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 percentnamely sales tax combination of 10 percent and service tax of six percent.

"Presumption that '10 percent and six percent equivalent to 16 percentprobably start when GST replaced with two separate taxesnamely 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 percentrespectively own scope that is very differentSales tax include manufacturing goods and items imports while service tax scope only covered service.

"Legally and policyit is whether 10 percent or six percent, neither at the same time(acknowledgedsales 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 percenthe saidend tax burden is number 'weighted averagelocated between continuum zero percentsix percent and 10 percent - depending onrate from ‘goods’ imposed respective tax in zero percentsix 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 taxknown as 'cascade tax' or 'effect cascade' and indirectly increase price of certain goods that affectedmake him more expensive (and less competitive terms of pricing) with every SST registrar additional along supply chain," said Tan.

According to himgood luck authorities realize uproar that "cascade taxcan increase the priceFrom various methods that they use to minimize "effect cascade", three of them should be mentioned.

FirstTan saidgovernment 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 taxationlaw identify (specifically) kind of people that can imposed by SST. For exampleonly manufacturer is called 'people who can be taxed' , not wholesaler or retailer; Therefore, avoid cascade tax along distribution chain.

"And thirdtotal goods incurred road tax is about 6,400 compared to 11,197 under GST (represented about halfwhile services group that is narrower under service tax," clear Tan.

According to him, although phrase "10 percent and six percent equal to 16 percentinaccurate legallyproblem description 'tax cascadeit 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.

-- BERNAMA

 

source : Astro Awani http://www.astroawani.com/berita-bisnes/sst-2-0-perlu-jadi-satu-revolusi-kata-akauntan-185935

search by : Wan Arlindiana Ruzaini Wan Ali Megal

Date of Input: 20/09/2018 | Updated: 20/09/2018 | wanarlindiana

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