Gst Case Study

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Recommended: The role of government in consumer protection

3.0 APPROACHING THE PROBLEM AS AN OPPORTUNITY
There are a few definitions on this problem. In this GST matter, the consumers should look at the problem that arises as an opportunity for improvement. To consider a problem as an opportunity, the consumers should try thinking out of the box. As wrote by a weekly magazine of the US aviation industry, “We must step back and see if the solutions to our problems lie outside the box.” (Aviation Week & Space Technology, July 1975).
To the ruling government, it is essential for them to continue acknowledging, informing or educating the people or consumers on solutions they think can resolve the worries and fears. The government and the concerned agencies in introducing GST should be creative and be available to the consumers at all time for any question or clarification. As maintained by Gerard J. Puccio (2014), chairman of the International Centre for Studies in Creativity at Buffalo State Collage, “The reality is that to survive in a fast-changing world you need to be creative.”
3.1 Elimination of Sales and Services Tax (SST)
The purpose of GST is to replace the current Sales and Services Tax (SST). Sales Tax was introduced on the 29th of February 1972. It is a single stage consumption tax, levied, charged and paid on goods manufactured in Malaysia and imported. Sales Tax is normally charged at 5% or 10%. On the other hand, Service Tax was introduced on the 1st of March 1975 as a single stage consumption tax, levied, charged and paid on specific services provided by a taxable person in Malaysia at and flat rate of 5% on Service Tax.
Consumers are not aware that they are paying up to 15% of tax on goods and services, because it is a double tax system. Once the GST is implemented, the rat...

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...o make rational choices, spend prudently and report unethical traders to the authorities. The Ministry of Domestic Trade, Cooperatives and Consumerism will strengthen enforcement effort through the Price Control and Anti-Profiteering Act 2011.
If it comes to a worst case scenario, the consumers need to know where they should go to, such as Malaysia Anti Corruption Commission (MACC), Royal Malaysian Police (RMP), Royal Malaysian Customs (RMC), Road Transport Department of Malaysia, Immigration Department of Malaysia, Securities Department of Malaysia and Companies Commission of Malaysia to report any issues regarding corrupt practices or improper conduct in business dealings. They should be exposed to the information such as The Malaysian Whistleblower Protection Act 2010 that are protecting the whistleblower or the person that disclose any corruption or misconducts.

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