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CIMB Equities Research said Friday that although non-exempt property is ready for price increases after the GST tax holiday, OHS 2.0 covers a smaller basket of goods and services. However, cars, some building materials, processed foods and services are not exempt.
As Finance Minister Lim Guan Eng said Thursday, the basket of goods and services will be 38% of the CPI basket against 60% and service tax (GST), this which reduces the inflationary impact for consumers.
"We are keeping our inflation forecast of 1.3% in 2018, which already presupposes the reintroduction of SST," she said.
As a reminder, the SST proposes rates of 5% and 10% for the sales tax, and 6% for the service tax, which was similar to the previous SST scheme that was withdrawn after 2015.
that a separate schedule will be released later for petroleum and petroleum products, no specific provision has been made for tobacco and alcohol, which resulted in respective sales tax rates of 25%. % and 20% under the 1.0 TV, which means that the tax rate has not been established or that a normalized sales tax of 10% applies.
The new SST Bill will soon be tabled and should be passed before the end of the current parliamentary session in mid-August. SST 2.0, along with the zero-rating of the June 1 GST, brings one of the new government's election promises closer to completion.
"We understand that improvements are being considered in the new OHS Bill to address criticisms of the former OHS. taxation, incomplete tax relief for exports outside designated / special areas and efficiency of collection.
"The Royal Customs Department of Malaysia (RMCD) is also in consultation with the Ministry of Finance and the Ministry of Commerce and Consumer Affairs to monitor and prevent unjustified profiteers during the implementation of OHS 2.0". OHS 2.0 and the proposed repeal of the GST Act relieves many companies of expensive reporting obligations, with the RMCD estimating that fewer than 100,000 businesses will be affected by RST 2.0 versus 472,000 under the GST.
Lim also argued that delayed GST refunds had a negative impact on cash flow from operations and increased costs for businesses.
The RMCD plans to help reduce the administrative burden by the automatic registration of eligible enterprises (annual business figure of more than 500 000 RM) The CIMB research said that the government is waiting for to collect RM21bil per year from the SST, against RM44bil under the GST estimated in the 2018 budget before its deletion on 1 June, leaving a deficit of 23 RM $ per year (1.6% of GDP).
"While higher oil revenues provide a fortuitous temporary buffer, maintaining fiscal discipline depends on the ability of the new government to quickly rationalize unproductive spending and reduce lost revenue." 19659002 "In the medium term, which helps to simplify tax structures and broaden the tax base, is just as essential to ensuring the sustainability of debt and debt," he added. ]
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