MIRI – GST (Goods & Services Tax), which is also known as VAT or the value added tax in many countries is a multi-stage consumption tax on goods and services.
GST is levied on the supply of goods and services at each stages of the supply chain from the supplier up to the retail stage of the distribution. Even though GST is imposed at each level of the supply chain, the tax element does not become part of the cost of the product because GST paid on the business inputs is claimable.
PAS Sarawak Deputy Commissioner, Haji Jofri Jaraiee said some of the services are already subject to GST.
“We find that there are some of the services are already subject to service tax or GST before entering the New Year 2015. Among the services that have long been subject to service tax is phone bill and also some fast food franchise.
“We also found that a parking area at Miri airport also subject to GST such as imposing telephone billing services tax before they fall due,”Jofri said in his statement.
Most consumers, especially those living in rural areas are still confused and do not understand the GST that will be charged on April 1, 2015 later.
GST is not only burdensome but it will also affect small-income consumers who have to bear the cost of the goods they use.
Most businesses already impose GST or services tax to consumers unnoticed. It is the responsibility of the government to explain to consumers what are actually GST and its impact on consumers.
PAS Sarawak urge the government to list the item to clearify which will be tax by GST
“We urge the government to list items that are already subject to GST and also that will be imposed on April 1, 2015 later so that the consumer is not confused with the actual GST.
“As many subsidies were abolished, including subsidies for petrol, therefore it is duly the GST charges imposed on the consumers should be reviewed so that it does not burden the consumers because consumers are not able to claim back their spending from the Inland Revenue Board as dealers registered with the GST.
“Cooperation with the government to review the GST with reasonable charges so that it not burdens the people that face of inflation now is greatly appreciated,”added Haji Jofri
