KUCHING: After 3 years of implementation, the Goods and Services Tax (GST) has been reduced to 0 per cent as of June 1, 2018.
Implemented on 1 April 2015, the value-added tax was set at 6 per cent and was welcomed with mixed reactions as some said it would burdened the people – especially those from low income families – while some noted that there was not much of a difference.
54-year-old Bonnie Stewart Ngau, who works in the private sector, he said that it would not make much of a difference as his family only buys the essentials.
“For small income people like me, it does not have a huge impact because I buy things only when the need arises and the quantity is usually small.
“What the government should do is redo and reduce the levels where only the main source like the raw material to be taxed with the GST and redirect the GST to pay our country’s debts before abolishing it,” he said.
In addition, 31-year-old Dr Sebastian Ling, who is a medical doctor, also disagreed with the abolishment and that GST should be continued.
“If implemented correctly, it can obtain revenue for the new ruling government as the access to additional sources of revenue can be vital in rebuilding our country and addressing issues that have long plagued our country.
“From providing excellent healthcare to our aging population, tightening our international borders to battle illegal smuggling, preservation of our unique biodiverse ecosystem, promoting our distinct Malaysian culture at the international stage, and cultivate the fertile minds of our youth, all this would need investment from the ruling government,” he said.
Meanwhile, Sophia Stewart, 57, said that she had noticed that there were more transparency on the prices of goods as GST had been reduced to 0 percent.
“Shops that usually don’t give receipts, such as small grocery stores, have started issuing receipts as proof that the total price is not inclusive of GST.
“There also seems to be a lot more people doing shopping to take advantage of the 0 per cent reduction,” she said.
26-year-old Dorothy Ling, who works in the hotel industry, said that GST would be a good idea which could have been implemented better.
“I have stayed in Australia which implements a GST of 10 per cent and I’m now staying in Singapore which has a GST rate of 7 per cent. Both of which are higher than the 6 per cent in Malaysia.
“GST is a good idea to support big projects and in my opinion, Australia and Singapore have progressed well because of that,” she said.
