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The Minister of Finance explains that the collection of OSH is much smaller than the collection of the GST.
Finance Minister Lim Guan Eng claims Umno for trying to deceive the people. (Photo by Bernama)
PETALING JAYA: Finance Minister Lim Guan Eng has accused Umno of making false statements by saying that the sales and services tax (SST) would weigh even more heavily on the population than the tax on products and services. Describing Umno's argument as "illogical", Lim said the party compared apples to oranges.
"According to them, my return to the old 10% sales tax system and the 6% service tax means that the tax rate would be 16%, higher than the GST of 6% is wrong, because we can not just add
the sales tax and the service tax, which would be equivalent to apples with oranges, "he said in a statement. According to the projection of the previous government, the GST should raise RM 44 billion in 2018.
"Therefore, compared to the GST, Pakatan Harapan's new government has" returned "RM 23 billion to rakyat. Umno should not try to deceive the rakyat by telling him that it would be worse with SST when the same SST system adopted by Umno before April 1, 2015 would not cause difficulties to ordinary rakyat as it had done the GST. "Lim went on to explain that the 5% and 10% sales tax applies to certain manufactured and imported products, not to all products, as opposed to GST
Second, the 6% service tax applies Unlike the GST, sales tax is imposed on the price of manufacturers and importers, while the GST is taxed on the final price It is therefore wrong to claim that a sales tax of 10% is greater than a GST of 6%.
"For example, a manufacturer imposes a sales tax of 10% (10 sen ) on a pop can made for RM1. However, when the same can is sold to a consumer at 7-Eleven for RM2, a 6% GST of 12 sen would have been imposed.
"In this case, it is clear that a GST of 6% to 12 sen He added that the Ministry of Finance had also embarked on a comprehensive review exercise of OHS with the help of cabinets Tax Consultants Pricewaterhouse Coopers (PwC) to Simplify SST.
"PwC Will Help Streamline Tax Collection and Reporting Requirements to Make SST More Effective and Less Effective bureaucratic than the GST or even the old OSH system.
"PwC will ensure that OHS will be imposed on September 1, 2018, Mr. Lim said that, unlike the GST, which weighs on the poor proportionately more, the new TOD would also be adjusted and designed so to ensure that the impact on the lowest incomes is lower, lighter and less cumbersome, the groups will be proportionately less.
The details of the im The proposals will be announced at the filing of the new project at the same time as the SST Act in Parliament, adds the declaration.
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