GST has become popular issue nowaday. Public has spoken and many of them disagree about this policy. Is it really bad about GST or being manipulate by someone? I can’t clarify about it but there’s a good news by Malaysian Government about GST.
Malaysian Government concern about this issue and give explanation about the implementation. One point they revealed is that taxpayers can expect a reduction of between one and three percentage points in personal income tax rate for the 2015 assessment once the Goods and Service Tax (GST) is introduced on April 1 next year.
The highest taxable income band will be raised from RM100,000 to RM400,000 for the 2015 year of assessment with the maximum income rate of 26% cut to 24%, 24.5% and 25%.
The BR1M also continue for those monthly income of below RM4,000 once the GST is launched.
Finance Ministry tax division undersecretary, Datuk Siti Halimah Ismail said that for businesses, the corporate income tax rate would be cut from 25% to 24% for the 2016 year of assessment.
SMEs will also see their income tax reduced from 20% to 19% while the co-operative income tax rates will fall from 25% to 24%.
The introduction of the GST in Malaysia is expected to change the mix of tax revenue in Malaysia where much of what the Government gets in tax collection is direct taxes such as corporate and personal income taxes.
– The Star