No News Is Bad News
For image info, go to https://www.yycadvisors.com/overview-of-gst-malaysia.html (AN OVERVIEW OF GST MALAYSIA)
UPDATE:
Tax on share dividends will bring more than GST, govt told
Bringing back GST would provide only marginal gains, but a tax on the rich through share dividends would provide much more revenue, says Barjoyai Bardai.
Danish Raja Reza - 08 Oct 2023, 9:30am
Company profits are taxed, but the profit distributed to shareholders is not taxed at present. An economist says such a tax will raise more revenue than GST.
PETALING JAYA: Three economists have suggested taxes on the rich via share dividends, capital gains and individual income which they say could provide greater amounts of government revenue without re-introducing GST (goods and services tax).
Barjoyai Bardai of Universiti Tun Abdul Razak called for a double taxation approach for corporate income, Yeah Kim Leng of Sunway University proposed a capital gains tax on unlisted shares, and Lai Wei Sieng of Universiti Kebangsaan Malaysia said tax rates for those in high income brackets should be raised.
Barjoyai said a change in taxation policy on company profits while retaining the existing sales and service tax would be more beneficial than bringing back GST which was abolished in 2018.
The reintroduction of GST has been urged by some groups making suggestions for next year’s federal budget. Barjoyai said GST was likely to yield a marginal increase of RM8 billion annually.
Barjoyai Bardai.
However, if taxes were imposed on dividends paid to shareholders of listed companies, “I think they will easily generate RM50 or 60 billion in tax immediately,” he told FMT.
Barjoyai said the corporate income tax in Malaysia works on a single tax basis. “We tax the company’s profits. But when the company distributes the profits to shareholders, it is not taxed any more,” he said. However, the rest of the world place taxes on the company as well as on shareholders.
The policy allows about 100,000 families to live without paying any income tax despite living on income from dividends. “So they are rich, but have never (had to pay) tax all their lives,” he said, adding that such “discrimination” that favoured the rich should be halted.
Yeah Kim Leng.
Yeah said that the proposed inclusion of a capital gains tax on unlisted shares, as stated in the revised 2023 budget, could offer an additional avenue to boost revenue.
However, he said that improving the efficiency of tax collection and government spending can achieve a significant contribution to government revenue.
Lai Wei Sieng.
“Revenue enhancement measures will have to be accompanied by efforts to increase spending efficiency and allocating appropriately to various spending needs with greater market buy effect. That means more efficient resource allocation of revenue to various users,” said Yeah, who is also part of a team set up to advise prime minister Anwar Ibrahim as finance minister.
Lai suggested that the personal income tax rate be raised for the top 10% of society and a higher company tax rate for multinational companies. He also advocated greater investment in a variety of financial instruments, including stocks, bonds, and other securities.
GST: DAP now as quiet as a church mouse
KUALA LUMPUR, Oct 6, 2023: History has shown that Malaysia’s federal governments have alway sided with corporates but not the layman.
Malaysians can also expect Anwar Ibrahim’s Unity Government (UG) to do the same, as corporates wield considerable influnce on politicians.
So, Malaysians must be prepared for more financial stress as Budget 2024 may reintroduce Goods and Services Tax (GST).
What is most disappointing is that the DAP, unlike when it was in the Opposittion, has been criticising and objects governments on many socio-economic issues, including the GST.
But the DAP is now as quiet as a church mouse on the many issues that it had objected. Why?
Like previous federal governments, the DAP is now in the federal government and is timid with issues that affect the rakyat (people).
No News Is Bad News reproduces below a Facebook posting on the GST:
With the upcoming Budget 202 , GST proponents have started their media campaign to push for its re- introduction. It's simply unfair that the B40, already burdened with food price increase are asked to fork out more for GST. Chart shows how GST impacts the poor more
They want GST so can keep corporate tax low, so B40 are sacrificed for corporates?
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