...THE PERCEPTION OF TAXPAYERS TOWARD GOODS AND SERVICES TAX (GST) IMPLEMENTATION IN MALAYSIA CHAPTER ONE - INTRODUCTION 1.1 Backgroud of Study Malaysian taxation system is generally divided into two, which are direct taxes and indirect taxes. Indirect taxes are controlled by the Royal Malaysian Custom Department (RMCD) and it consists of four components such as excise duties, customs duty, sales tax and service tax. Direct taxes are under the control of the Inland Revenue Board of Malaysia (IRBM). The IRBM is responsible for all policies relating to direct taxes such as income tax of individual and business, petroleum income tax, real property expansions tax, and stamp duty. From the government perception, taxation is a vital economic tool because it can be employed to regulate the economy, to invigorate economic growth through the granting of fiscal incentives as a principal aim of implementing tax policies and to provide funds for development projects (JeyapalanKasipillai, 2005). The contribution of direct taxes and indirect taxes to government revenue in 2009 amounted to RM78.375 billion (49.4%) and RM28.129 billion (1 7.73%), respectively. This shows that taxation contributes more than 60% to the Malaysian government revenue. Recently, the Malaysian government established the implementation of goods and services tax (GST) to replace Sales Tax and Services Tax (SST). The GST plan was first raised in 1988 but at the time it was considered unnecessary because the sales...
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...Literature Review 1.1 Readiness, Perception and Awareness of people towards GST. The literature on the GST is extremely wide . The are many areas that can be focus on basically while doing my research . The most highlight areas on GST is on the public reaction towards GST in Malaysia before the implementation which can known their readiness , perception and awareness on GST. According to ( Mohd Rizal Palil ,2011) he has done a research in Malaysia on the impact of Good and Service Tax towards Middle Income Earners. The author has done survey towards people all around Kuala Lumpur through questionnaire. Based on the finding of his research he reveals that most of the employees does not support the government decision for the implementation of GST and also they strongly does not accept the fact that GST will be implemented in the nearest future. At the same time they strongly does not support the implementation. Based on (K. Saira ,2010) he has done a research on the awareness of the people towards GST and his finding indicates that people are not aware that GST will be charge on Goods and Services. The researcher conclude that people are not aware of GST as soon its going to be control in their life. Beside that they are not aware that it will impact on the economy very well. (K. Saira ,2010) There is also another research which is concerning about the perception of Tax Payers on GST by (Tan Mei Lian ,2010) .The author has also done survey questionnaire towards people...
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...Introduction The idea of introducing a flat consumption based Goods and Services Tax (GST) in Malaysia has been floated since 1989. It now seems as though this may become a reality in the 2014 Budget, with implementation beginning within 18 to 24 months at an initial rate of 4 % on the supply chain. The plan to overhaul the tax system has begun to gain momentum as the government deals with an increasingly weak economic outlook, combined with global uncertainty. While not at the emergency levels of many advanced Western European economies, Malaysia has not run a structural budget surplus since the Asian Financial Crisis hit in 1997. Federal government debt as a percentage of Gross Domestic Product (GDP) currently sits at 55.4 %.1 For the time being, this is manageable, but it is the government’s ability to reign this spending in, as well as lack of budgetary reform that has led ratings agency Fitch to downgrade Malaysia’s credit outlook to negative this year. The government’s recent 20 sen cut to the fuel subsidy and increasing speculation of a GST framework to be included in the upcoming budget can be seen as evidence that they are trying to remedy both structural and cyclical economic challenges. Furthermore, for far too long there has been an overdependence on the revenue generated from oil and gas dividends, which currently account for over a third of total government revenues. 2 A GST offers a single unified system where the tax burden is equally shared between the services...
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...The Acceptance and Awareness of Small and Medium Enterprises towards Implementation of GST in Kuala Lumpur and Johor Bahru CHAPTER ONE – INTRODUCTION 1.1 Background of the Study The production of a good or service, in general, goes through several stages before the final product or service reaches the consumer. To illustrate, if the production and distribution process is divided into three basic stages of manufacturing, wholesaling and retailing, value is added at each stage through further processing, packing or other improvements before it reaches the consumer via the retailer. The GST is a tax on the value added to the output or service at each stage of the process. In its generic form, the GST is a value-added tax (VAT). These terms are used interchangeably in this note. A multi-stage tax like the GST protects tax collections through two built-in features. First, the multi-point collection and invoice trail minimizes tax avoidance and tax evasion. This is because the need to issue and obtain invoices to claim tax deductions for taxes imbedded in inputs from a previous stage of the production chain fosters greater compliance. Second, the GST is better able to protect revenue from tax evasion by retailers as compared to a single-stage sales tax imposed solely at the retail sales tax (RST). This feature, however, comes with greater administrative and compliance costs. 1.2 Problem...
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...EPGB6122 Title: “Public Readiness in GST Implementation 2015 - In case of Kuala Lumpur, Malaysia” Prepared by: Noorul ‘Aini Hanifa binti Su’aidi EGC140004 Masters in Public Administration Semester 2014/2015 Public Readiness in GST Implementation 2015 - In Case of Kuala Lumpur, Malaysia 1. Background Taxation is one of the important elements in managing national income, especially in developed countries and has played an important role in civilized societies since their birth thousands years ago (Lymer and Oats, 2009). The introduction of Goods and Service Tax (GST) was first announced in Malaysia Budget 2005, and then projected to be implement in January 2007. In February 2006, government has announced that the implementation would be postponed to a later date. In 2010, it was when Government finalizing the study of the implementation of GST and identifying the social impact of GST on the public and inviting many discussions among expert and GST proponents publicly. The uncertainty on GST implementation cast many doubts as to whether Malaysia needed the GST regime, and if so, what could be the public benefits to the public from this exercise. The government had putting a great effort in promoting the implementation of GST, however an attention to educate the public of GST understanding should be in place as well. Hence, GST is not a new exercise of tax; with more than 140 countries worldwide having had implemented GST, and this is includesd many developed...
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...Assignment on LR Process (10 Marks) 1. Categorizing your papers This should be a list of papers that have shaped your thinking so far. You may wish to highlight those that are ‘core’ and those that are more ‘peripheral’ [recognising that what is deemed core and periphery may change over time]. State a list of 15 papers related to your work. |Core papers |Peripheral papers | | | | | | | | | | | | | | | | On what criteria have you decided that a paper is core/periphery. Core papers are: • Texts that acknowledge and discuss the problem statements of your research and discuss the reality of the related situation. • Texts that reflect on the link between areas of focus in research • Texts that discuss...
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...Introduction On 10th October 2014, Dato’ Sri Najib Tun Razak, a Prime and Finance Minister, unveiled Budget 2015 addressing key issues on promoting fiscal sustainability and easing the transition to GST for business and consumers, while placing the nation on a firmer growth trajectory towards Vision 2020. Part 1 The three key issues concerning the individuals and sole-proprietor business have been introduced in 2015 budget. The first issue is about individual tax. The first change is that the income tax rate is reduced by 1 to 3% for resident individuals depending on different levels of chargeable income since Year of Assessment (YA) 2015 (KPMG, 2014). This results in that tax payers with family and income of Rm4,000 per month will not have tax liability. Besides, the income tax rate for non-resident individuals is reduced by 1% from 26% to 25% (KPMG, 2014) Chargeable Income(RM) | Current Tax Rate (%) | Proposed Tax Rate (%) | Reduction(%) | 1—5,000 | 0 | 0 | - | 5,000—20,000 | 2 | 1 | 1 | 20,001—35,000 | 6 | 5 | 1 | 35,001—50,000 | 11 | 10 | 1 | 50,001—70,000 | 19 | 16 | 3 | 70,001—100,000 | 24 | 21 | 3 | 100,001—250,000 | 26 | 24 | 2 | 250,001—400,000 | 26 | 24.5 | 1.5 | Exceeding 400,000 | 26 | 25 | 1 | This tax brackets illustrates the chargeable income is raised from RM100,000 to RM400,000 and the rate for chargeable income band exceeding RM100,000 is structured into three bands with reduced rates of 24%, 24.5% and 25%, which results in existing...
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...Overview of GST GST (good and service tax), other words it also known as VAT (value added tax). It have implemented in many countries throughout the world. Currently there are 170 counties in the world that have implemented GST /VAT. NO REGION No of country 1 ASEAN 7 2 Asia 19 3 Europe 53 4 Oceania 7 5 Africa 44 6 South Africa 11 7 Caribbean, Central and North America 19 Table 1: No of countries implement GST/VAT Sources: Ministry of Finance GST is a multi-stage tax system, this is due to its nature which the tax is collected based on the supply of goods and services at each of the supply chain from the supplier to the retailer stage of the distribution. Even though GST is imposed at every stage of the supply chain, but the tax element will be not become a part of the cost of the product, because the GST paid on the business inputs is claimable as input tax. Where the business will pay the GST as output tax and claim for the input tax from the customs. In addition, it does not matter how many stages where a particular goods and services goes through the supply chain because the input tax incurred at the previous stage is always deductible by the businesses at the next in the supply chain. GST consider as a broad based consumption tax, which includes all sectors of the economy. In Malaysia the GST have been establish in a very clear manner, for example all goods and services made in Malaysia including...
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...Asian Social Science; Vol. 9, No. 11; 2013 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education Elements of Compliance Costs: Lesson from Malaysian Companies towards Goods and Services Tax (GST) Mohd Rizal Palil1, Rosiati Ramli1, Ahmad Fariq Mustapha1 & Norul Syuhada Abu Hassan1 1 School of Accounting, University Kebangsaan Malaysia, Malaysia Correspondence: Mohd Rizal Palil, School of Accounting, Faculty of Economics and Management, University Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia. E-mail: mr_palil@ukm.my Received: May 6, 2013 Accepted: June 20, 2013 Online Published: August 30, 2013 doi:10.5539/ass.v9n11p135 Abstract URL: http://dx.doi.org/10.5539/ass.v9n11p135 Various parties including academics, professionals and the society (the potential GST payers) are arguing about the introduction of GST in Malaysia. Goods and Services Tax (GST) or Value Added Tax (VAT) is a consumption tax imposed on the sale of goods and services. The Malaysian government introduce this potential tax mechanism, in order to increase the existing tax bracket and replacing the long-implemented service and sales taxes. With the introduction of GST, the Malaysian government felt it would provide them with the prospect to reduce the rates of individual and corporate income tax. However, do all companies particularly small and medium enterprises (Companies) ready to adopt the systems efficiently? If they could adopt the system, how much their...
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... Pages | 1. Introduction to GST 4 1.1. Background Of Study 4 1.2 What is GST 6 1.3 Why is GST implemented 8 1.4 Difference between GST and SST 9 1.5 General operations of GST 10 1.5.1 Goods and Services Tax (Zero-rated supply) Order 2014 11 1.5.2 Goods and Services Tax (Exempt supply) Order 2014 132. Content 14 2.1 Effect of implementation of Goods Services Taxes (GST) in Malaysia 14 2.1.1 GST are regressive tax or progressive tax? 14 2.1.2 Effect of implementation of GST on inflation based on CPI 16 2.1.3 Effect of implementation of GST on the household income 19 2.2. Impact of GST on sub regions of Malaysia ...
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...2. Company Background 2.1 Company History Southern Lion Sdn.Bhd was established in April 1987 in Larkin Industrial Estate, Johor Bahru. The company is a 50/50 joint venture company between Lam Soon (M) Berhad and Lion Corporation, Japan. The well-known brands sold by company include TOP, Shokubutsu, Systema and Kotomo (Southern Lion Sdn.Bhd 2012). The company vision is aimed to be the market leader within the top three positions. They seek to build the brands with providing high quality and ecofriendly. It is also strict to achieve the cost-efficient production and market innovation goal in operation (Southern Lion Sdn.Bhd. 2012). The mission of company is to improve the life quality of Malaysian consumer by offer the affordable and innovative products. The company tries to win the heart of consumers and develop the reciprocal relationship with them. Moreover, it tries to achieve value maximization of shareholders, customers as well as employees (Southern Lion Sdn.Bhd. 2012). The management structure of Southern Lion is more empowered to employees. According to financial report of Lion Corporation in 2013, the organization style is not top organization just give the direction to subordinate whereas it give the driving force for creativity and able to accept challenges. 2.4 SWOT Analysis 2.3 4Ps Product Currently, TOP had launched various product categories and form. It includes the powder form detergent, liquid form detergent and also softener. In powder detergent...
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...percent to 2.5 billion euro (Spain. Inditex S.A.,2014). Inditex is maintaining the aggressive strategy in 2015. Alexander's (2015) article indicates that, Ortega's net worth hit $80 billion as stock in his holding company Industria de Diseno Textil (Inditex) reached an all-time high of 33.99 Euros per share. As mentioned above, the first Zara store is opened in La Coruña in 1975. In 2014, 64% of the total net sales of Inditex Group are produced by Zara. The total net sales of Inditex is 18.117 millions of euro while Zara's 11,594 million euro (Spain. Inditex S.A.,2014). From statistic, Zara is the most earning brand under Inditex. Moreover, Zara had won a few awards such as The Best Global Brands and The World's Most Valuable Brand. In Malaysia, Zara is...
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...to extend my appreciation to my industrial supervisor, Madam Norafiza Binti Sahibullah and En. Azlee Abdul Rahim for their advices and patiently guiding me through while I working here as a trainee. Not forgotten to all the staff of Ismail Adam & Co, I appreciated every single of their kindness in helping and teaching me when I’m working there. I am very lucky to have such a helpful colleagues and I never felt left out in any situation. Last but not least, thank you for University Teknologi Mara (UiTM) for giving me such a great journey in learning accounting since my first year. Without acceptance from this institution, I probably not being able to learn more on this professional course. Thank you to every single person. INTRODUCTION Ismail Adam & Co is one of the audit firm in Malaysia which has been registered as Chartered Accountants Firm and member of MIA (Malaysia Institute of Accountancy). This company was established by En Ismail Adam and lending their services in accounting, auditing and taxation. The company was located at Gombak as Head Quarter and have a branch at Bandar Tasik Selatan.The Firm will be a consortium of consultants and professionals who are dedicated to...
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...Introduction: The Republic of Singapore was known as a thriving British trading port back in 1819. She then merged with Malaysia in 1963, but was expelled from the federation in 1965. Singapore, without natural resources, was doomed to fail in eye of neighbouring nations. But has transformed from third to first world standards in a very short period of time. Singapore also became one of the world’s most affluent nations with important trading links such as one of the busiest ports in the world and best airport infrastructure in the world for years running. Singapore’s GDP per capita is comparable to first world European nation’s counterparts as well. Singapore’s economy is largely dependent on exports, some examples are IT-related, user electronics products, pharmaceuticals, and financial services industries. For instance, the republic has one of highest volume in export refineries around the globe, oil exports accounted about 68.1m tons in 2007. The O&G industry accounted for 5% of Singapore’s GDP as well. (Economic Development Board, n.d). According to Strait Times: Singapore secured position as the second freest economy in the world in 22 straight years, the acceptance to global trade & investment remains to contribute a sturdy support for economic dynamism in Singapore. One of the key events happened past decade in Singapore is the collapse of Lehman Brothers that leads to financial crisis in 2008. The Republic takes the lead among the East-Asian countries...
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...Abstract The purpose of this study is to analyse the factors of affecting the students’ purchase intention on mobile phone in Johor. The result is useful for manufacturer to take the feedback and make the improvement in the future. There are many factors of purchase intention and it changes with the time. Therefore, this study will focus on 4 variables to analyse which are brand, price, feature and recommendation by friends and family. Moreover, data were collected from Southern University College students in Johor Bahru. This data is based on 100 respondents who age is between 20 and 30 years old. The quantitative method would be used to collected data which can help to save time and costly. Besides, the result shows that brand is the main factor affects the students’ purchase intention. Hence, this study suggested that the mobile manufacturer should consider the above mentioned factor which helps to enhance the students to purchase. Acknowledgement In this regard, I want to express my gratitude to my supervisor, Mr. Alex Tan Wei Liang. During this time, he spends his time to guide me to complete this research study. Also, he always use his language to call me relax when I am feeling stress and bad mood. In addition, one of the important roles in this research study is the respondents. I would like to thank for them due to willing to spend their time and help me to response the questionnaire which is part of the research study. Lastly, I would like to thank...
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