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7th Rangers: Everything you wanted to know about GST - This will happen when UMNO rules after GE-13

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Everything you wanted to know about GST - This will happen when UMNO rules after GE-13
Friday, December 02, 2011
Go, Squeeze Them (GST).Our Rakyat do not fully understand the implication of GST, until it is implemented and prices of goods spiralling upwards. By then it is too late. A rich country like Singapore introduced GST at 3%. A poor Malaysia wants to implement GST at 4%

GST is a multi-stage tax system. ( TRY TO UNDERSTAND THIS !!!!!)

Everything the sellers sold, from manufacturer, wholesaler to retailers, collect GST for the government. Unlike the the current sales and service tax (SST) is a single-stage tax. Only one party along the supply chain collect the SST for the government. If the manufacturer collects the tax, the rest are not allowed to collect.

Just imagine every seller add GST when they sell. ( READ N TRY TO UNDERSTAND THIS !!!!!)

For example: The current Sales Tax for Toilet soap is 10%. With GST, the manufacturer pays 4% to the govt when he sells it to the Wholesaler, the Wholesaler pays the govt another 4% when he sells to a Retailer; and when the Retailer sells it to the Consumer, he pays another 4% to the govt. The Consumer actually ends up paying more than 12% in cummulative GSTs for the same piece of soap or > 20% more in taxes. (10% vs 12%+++)

1) Manufacture to Wholesaler - RM 1.00 + 4% ( RM 0.04 ) = 1.04

2) Wholesaler to Retailer - RM 1.04 + 4% ( RM 0.42) = 1.082

3) Retailer to Consumer ( idiots like you and me ) - RM 1.082 + 4% ( RM0.043) = 1.125 YOU AND I HAVE TO PAY A TOTAL TAX OF 12.5% or RM 0.125 FOR EVERY RINGGIT OF THE MANUFACTURERS PRICE ON THIS THREE TIERS SYSTEM

If the supply chain is longer than 3 stages, the consumer ends up paying 4% more for each addition stage. Eg Manufacturer to Agent (4%) to Wholsaler (4%) to Retailer (4%) to Consumer (4%).. Total 16% ++++ (vs 10%) or 60% more in taxes!!!! ( This final price that idiots like you and me have to pay is RM 1.17 equivalent to 17% TAX or RM0.17 for every Ringgit of the manufacturers price) on this FOUR tiers system

If the GST is not stopped, the Rakyat will ended up paying very very very high prices for everything. ( that is why it is call the GO, SQUEEZE THEM - GST )

Now do you agree when the rakyat say that Malaysia is going bankrupt? This is the main reason why the GST was introduced - to increase the government's income. The next logical question is - Where did all the tax money collected go ??????
posted by Major D Swami (Retired) @ 5:42 PM  
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