Tax System in our country

Tax systemGood and service tax (GST)

Woan Shin

   Good and service (GST) is a consumption tax based on the value added concept. Every production and distribution stage in the supply chain including importation good and service in Malaysia will need to apply GST. In Malaysia, GST was implemented with effect from 1 April 2015 at a rate of 6%.

   I agree in GST, as everyone income is come from our country so that we have the responsibilities to pay the tax for the country no matter lower or middle class income. So that government need collect the tax to improve our country. As they collect the tax, they provide a BRIM voucher for the students and every low income group which get a BRIM subsidies from government.

Ming Chun

Personal income tax

Chargeable income (RM)	Rate (%)
1- 5000	0
5,001- 20000	1
20,001- 35000	5
35,001- 50000	10
50,001- 70000	16
70,001- 100,000	21
100,001- 250,000	24
250,001- 400,000	24.5
400,001- 600,000	25
600,001- 1,000,000	26
More than 1,000,000	28

                            

  The table is showing the personal income tax will be collected by the government. I agree that income tax will apply to the citizen. As low income group does not need to pay for the government so that personal income tax will not affect their living quality. For middle class, income that more that RM5000 will need to pay 1% of their income which is very low. Paying RM50- RM200 can be help the government to improve the country is very worth.

Anuthat

I agree with tax system because when Malaysians buy things,taxes will be added in service charges and those taxes will go to the government and spend it on education,medicals,allowances for old people.as a low income group.it brings benefits to them when they apply loan for their studies,and their tax rate paid is 0.as the shown,the middle class group who earns more than Rm5000 per month tax rate paid is only 1%.which is low.if compare to buying houses or cars interes.So it wouldn’t affect daily life much.


Ang Xin Yee

Before GST, a 6% and 10% will be charged on goods and services that we purchase. But when the
GST was introduced, the tax rates that are being discussed now will be 4% lesser compare to before
GST. I think it is important that we have to take care on how we spend our money because the charges
was taken from us by force. At the same time, we have to realize also that the tax payment process is a responsibility to our country because if there is no tax imposed, all public services we enjoy today
cannot be given. So I think it is a win-win solution for government and citizens.

Lau Jun Shiang

Part of the revenue from tax is used by a government to manage the country and also for the expenses
of developing countries. The tax collected is spent by the government for the purpose of infrastructure
such as roads, hospitals, schools, the aim of developing economic, social goals such as health,
education, welfare and more. Taxation is an important point for the effective administration of the
country, so it is very important for us to understand that how tax charge by our country and to pay it
for the goods of our country. Therefore we must understand that the tax that we pay is to develop our
 country and those facilities could able to enjoy by us too..


References

1.  PricewaterhouseCoopers. 2015. ‘2015/2016 Malaysian Tax and Business Booklet’ [Available at: https://www.pwc.com/my/en/assets/publications/2016-malaysian-tax-business-booklet.pdf] [Accessed on: 29 October 2016]
2. Kurt Wagner. 2014. ‘8 Ways Facebook Changed the World’ [Available at: http://mashable.com/2014/02/04/facebook-changed-the-world/#7zy2gPquZkqw] [Accessed on: 29 October 2016]
3. Malaysia Income Tax Guide by Hann Liew, 2016 Available at: https://ringgitplus.com/en/blog/Personal-Finance-News/Malaysia-Income-Tax-Guide-2016.html [Accessed :6th November 2016]
4. Santander Trade Portal, Malaysia: Tax System, 2016. Available at https://en.portal.santandertrade.com/establish-overseas/malaysia/tax-system [Accessed:6th November 2016]