Introduction
In recent times, the Goods and Services Tax (GST) has been the subject of heated debates by Malaysians from all walks of life. Some of Malaysians can accept the new plan but some of them cannot and keep saying about the bad effects of the implementation of the GST.
GST which is also known as VAT or the value added tax in many countries is a multi-stage consumption tax on goods and services. GST is levied on the supply of goods and services at each stage of the supply chain from the supplier up to the retail stage of the distribution. Even though GST is imposed at each level of the supply chain, the tax element does not become part of the cost of the product because GST paid on the business inputs is claimable. Hence, it does not matter how many stages where a particular good and service goes through the supply chain because the input tax incurred at the previous stage is always deducted by the businesses at the next step in the supply chain. GST is a broad based consumption tax covering all sectors of the economy i.e all goods and services made in Malaysia including imports except specific goods and services which are categorized under zero rated supply and exempt supply orders as determined by the Minister of Finance and published in the Gazette.
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.
GST replaced the SST which also known as Sales Tax and Service Tax
The government’s intention has always been to replace the sales and service tax reg...
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... incomes because they have to pay taxes at the same rate as those with high incomes. Therefore the government should introduce GST along with a package or program such as cash payments or rebates to low income earners. Now as the BR1M program could be a model , but its implementation must be careful and systematic in order to pay cash to handle the cost of the GST does not leak and are open to abuse (eg : people who do not qualify also receive BR1M ) .
The concept of a consumption tax (consumption tax) as GST is the more you buy the goods or use the services more and more taxes paid. That means you can control your spending in a prudent and frugal. High income earners will pay higher taxes when they spend more than those on low incomes will only spend within their means. Program cash assistance from the government will reduce the impact of GST on low income earners.
...ther through income tax or GST, as they are all ultimate benefactors of socially optimal policy. Thus, the tax would be reinvested in benefiting Canadians.
Hall, A. (2001, August). The Flat Income Tax and the Fair Tax Consumption Tax: A
Mehan, C.. N.p.. Web. 19 Jan 2014. . . N.p.. Web. 6 Mar 2014. . Kirkland, Stephen D. "Should We Have A Flat Tax?." Business & Economic Review 49.1 (2002): 27.
A. First and foremost it would shift the burden of taxes from the rich to the middle-class
Many poor and middle classes can’t afford to take care of their families because of the increase taxation on themselves and their family. They have to suffer because of wealthy people's’ decisions. Also, the wealthy have enough money to pay more taxes than the normal tax payer. It's affecting everyone. The taxation is hurting the poor financially. As a result, their communities are being affected negatively because of the increasing amount of poor people, which is ridiculous and breathtaking.
In “The Federalist No. 21” Alexander Hamilton addresses the citizens of New York concerning the issue of taxation. Hamilton (1787) writes, “It is a single advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue.” The advice given by Hamilton in 1787 is the backbone of the FairTax Act. The FairTax or bill H.R. 25 is not a flat tax or a VAT tax. It is a tax on consumption. The FairTax is a twenty-three percent sales tax levied on all new goods and services. The FairTax replaces all current federal taxes imposed on the people of the United States. This includes all personal and corporate income taxes. The twenty-three percent tax is not imposed on old or used items. It is applied only to new items. The FairTax is levied on all services, even on doctor’s visits. Educational institutions are the only exceptions to the rule. The FairTax is revenue neutral, meaning it provides the same amount of federal income as the current system. To prevent the FairTax from becoming an undue burden on the poor, a monthly prebate is paid to every family (Americans For Fair Taxation 1007). The prebate is equal to the amount of taxes a family pays on all purchases up to the poverty level. For instance, if a family was estimated to spend $26,400 a year on basic necessities, based on a 23% sales tax, their annual tax burden would be $6,072. This tax burden is paid to the family in monthly installments at the beginning of each month. With this prebate, all families living under the poverty level will pay no federal taxes (Boortz & Linder 2005). Arguably, the most app...
This paper will take a close look at the concepts of the "flat tax," and look at the possible benefits and potential failings. Although there is a basic format to the flat tax, there are multiple flat tax proposals that have been offered by conservatives. Along with critiquing the basic format of the flat tax, this paper will compare an...
the example of taxation which is the first of its kind on this particular product. The author is
Protects the taxpayer during hard times, when income is reduced, the tax rate also become shifts to a lower bracket.
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
The use of taxes is one of the government's favorite ways to make its presence known in the economy. While this method seems blatantly obvious, many of the ways the government uses the money collected by taxation is not. Some of the money it takes is used to fund other programs designed to "protect" consumers and to "create" jobs. Be...
Indirect taxes are those imposed by a government on goods and services. There are many positive and negative implications of such a tax increase on both the consumer, producer and the government. There are two types of indirect taxes, specific and ad valorem. A specific tax is a set amount of tax per unit sold. For example a 60p tax on cigarettes. In contrast an ad valorem tax is a percentage tax based on the value added by the producer.
Taxation is a compulsory levy imposed on the income, value of goods and services of individuals, partners and companies by the government. It is can be said to be an approach of imposing tax on the citizen. This imposition of tax, is expected to yield income which should be utilized in the provision of both basic and substantial infrastructural amenities, both social and security, as well as creates conditions for the economic well-being of the society at large.
Government enhances the operation of the market system by providing an appropriate legal foundation and promoting competition. Government also provides certain goods which there are non-rivalry in consumption and non-excludability of benefits. Many quasi-public goods also provided by the government because of their large external benefits. To finance those goods and services businesses and households are required to pay taxes.
In conclusion, If this wealth tax is done fairly and logically then it would be a incredibly good solution to bridge the gap between the rich and the poor as well as creating a climate for social reconciliation and substantive equality.