What Do You Think About 6% Government Service Tax?

Effective from Jan 1, 2011, our government increases the Goods and Service Tax on all taxable services to 6% in order to generate extra tax revenue for our country development.


With this move, it will impact a great number of service industry. You may probably feel the effect of increasing service tax, you need to pay more money when visiting the fast food restaurants, or when you pay your telephone bills. However, this rate is not applicable to our credit cards where the service tax is charged at RM50 yearly on principal cards and RM25 for supplementary cards.

Government tax is based on the affordability concept. So, you have to pay it if you buy food or services that fall into Goods and Services Tax(GST) group. Actually, even now you are also paying for sales and service tax which is embedded in the price of goods and services and you may not realize about that.

Although this extra 1% services tax increment seems like not much, but it still can cause burden to lower income group of people in Malaysia. I personally think that our government should lower the corporate and individual income taxes. It will help country to achieve a sustainable and strong economic growth.

So far what do you think about this 6% Goods and Services Tax? Are you really happy to pay for the extra tax? What say you?

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