6% Headache | Ramblings of an e-trader

Saturday, 18 April 2015

6% Headache

So, the Goods & Services Tax (GST) was implemented in Malaysia beginning April 1st, 2015. Since then, every time we make a purchase or pay a bill, we are extremely conscious of how much extra we have to pay. 

Which is strange because prior to abolishing the Sales & Service Tax and replacing it with this Goods & Services Tax, we have already been taping up to 16% more. 

So, logically speaking, shouldn't we be paying a lot less tax since GST is "only" 6%? 

Unfortunately, it is not because the 6% is on top of every level of process or production of an item which means that by the time it reaches the hands of the consumer, the poor consumer has already had to pay for the multi-fold of 6% tax! 

Yes, no doubt some other countries are paying a higher GST rate but are we earning as much as the people in those countries?


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