Gst Summary

In: Business and Management

Submitted By yyl0124
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The Malaysia Goods and Services Tax (GST) Royal Malaysian Customs Department (2013) state that the government does implement the GST is because the existing consumption sales tax is unsatisfactory. There are also a reduction in the rate other taxes is sought. The existing tax system has not kept pace with the development of the economy. This is because they want to avoid tax cascading, multiple taxation and transfer pricing bias (Ministry of Finance Malaysia, 2014). Next, when they want to enhance tax compliance as well as to reduce tax avoidance and tax evasion, they have to avoid the issue of transfer pricing and value shifting. Then, they want to implement self-policing, lessen the bureaucratic red tape(Ministry of Finance Malaysia, 2014). Moreover, they want to lower the administrative cost and to enhance Malaysia’s competitiveness and to improve efficiency, Prices of Malaysian exports will become more competitive on the global stage as no GST is imposed on exported goods and services, while GST incurred on inputs can be recovered along the supplies chain. This will strengthen our export industry, helping the country progress even further (Ministry of Finance Malaysia, 2014). Thus, the GST will enhance the capability, effectiveness and transparency of tax administration and management. In addition, it will help the government find new sources of revenue.

Malaysia Goods and Services Tax (GST) Royal Malaysian Customs Department 2013, Why GST?, Malaysia Goods and Services Tax (GST) Royal Malaysian Customs Department, Malaysia.
Ministry of Finance Malaysia 2014, Why does the government want to implement GST? Why now?, Ministry of Finance Malaysia,…...

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