Menu

NAME SALES AND SERVICE TAX

0 Comment

NAME SALES AND SERVICE TAX (SST) GOOD AND SERVICES TAX (GST)
CHARGED TO MANUFACTURER OF OUTPUT LEVEL FROM PRODUCTION TO CONSUMER
RATE SALES TAX – 10% SERVICES TAX – 6% 6%- EACH LEVEL
CHARGED ITEMS MOST OF ALL GOODS SPECIFIC GOODS AND SERVICES ONLY
ADVANTAGE CAUSE GOVERNMENT TAX REVENUE DROP ABLE TO OVERCOME LEAKAGE
DISADVANTAGE ENABLE THE PRODUCTION PARTY DOES NOT DECLARATE THIS CHARGES THROUGH PRICING TRANSACTION CAUSED HARDSHIP FOR THE PEOPLE WITH COST OF GOING UP
COMPARISON BETWEEN SST AND GST
GST was introduced in April 2015 and it was said to be more transparent, effective, efficient and business friendly tax system as compared to SST. The 6% tax system is imposed on goods and services at every level of production in the supply chain which is manufactures, wholesaler, retailors and consumers. This input tax is claimable by businesses. SST is a single stage consumption tax for the sales tax, the government only collects tax at the manufacturer level and element of sales tax will be charged in the price paid by consumer. The sales tax rates is between 5% to 10% while the service tax is imposed on certain services such as takaful, insurance, and hotels as well as food and beverage services which the rates is set at 6%. Fewer items to be taxed under SST compare to the GST system. Overall, the SST is more of a direct taxation, and can be treated as an added cost to business. In conclusion, SST will be paid by end customers while GST is paid by all companies. Consumers pay SST only when consuming goods while GST is a tax payable on every transaction between companies before the customers get served.
https://ringgitplus.com/en/blog/Personal-Finance-News/GST-To-SST-Understanding-The-Facts-And-Figures.htmlhttps://mypf.my/2018/08/24/malaysia-service-tax-guide/https://www.thestar.com.my/business/business-news/2018/06/04/impact-of-sst/https://www.quora.com/What-is-the-difference-between-GST-Goods-and-Services-Tax-and-SST-Sales-Tax-in-Malaysia-Why-is-there-talk-about-abolishing-GST-and-bringing-back-SST-today