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

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 ??????

1 comment:

Anonymous said...

In the 1960's and !970's, many Chinese Malaysians spoke English among themselves. In year 2011, Chinese Malaysians speak Mandarin among themselves. I would like to commend UMNO-BN government for strengthening and consolidating the Mandarin language in Malaysia. UMNO-BN should be credited for increasing Mandarin usage in Malaysia. What ever changes in the education sector that UMNO brought about is indeed on the right track because Mandarin usage has increased. Furthermore, UMNO has been visionary because she has been able to predict the rise of China in the 21st century. Increasing Mandarin usage will benefit Malaysia because China is a rising power in this world. If only UMNO continues her pro-Mandarin policy, it will augur well for Malaysia in the long run. It is time to consider making Mandarin an official and national language in Malaysia.





Yes, one nation with one system will not work in a multi-religious and multi-lingual nation like Malaysia. All the three languages, Chinese, Malay, and Tamil, are different niches in Malaysia. They all contribute to Malaysia. Please ask Khairy to hold his tongue and mind his own business as regards to Chinese medium and Tamil medium schools.

At the global level, both Mandarin language and English will compete for influence. It is often a numbers game; and believe me that China with more than a billion people have an advantage in any numbers game. May be Chinese English will eventually be tolerated world-wide. (I define Chinese English as L1 interference English). Since China has a growing economy and more than 1 billion people, it would eventually be hard to avoid L1 interference English. The Chinese Malaysians should make sure that Mandarin medium schools grow in Malaysia.



By the way, the indigeneous people of Malaya are the Orang Asli, not Malays. Furthermore, another person who should hold his tongue and stop making comments is Dr.Chandra Muzzafar. Dr.Chandra Muzzafar has no influence among Malaysian Indians. If Dr.Chandra Muzzafar does make any comments, please ignore it.


The bottom line is that, no matter who says what, the future is that with every passing day both China and India are growing socially, politically, and economically. I don't care who says what; and I don't care who does what. Nothing can change the fact that with every passing day both China and India are strengthening socially, politically, and economically. That's it. The bottom line is the bottom line.