After three years since the implementation of 6% GST, the government has come to the decision to reduce it to 0% from Friday, 1st June 2018 onwards to fulfill one of their promises based on the manifesto presented during GE14.
There has been a lot of talk on the topic, and I'm sure everyone like myself will have a lot of questions on what the next few years will look like for us. To understand the whole situation better, we got a few experts to weigh in and guide us through the changes: Andy Gan, an associate member of Chartered Institute of Management Accountant (CIMA) and Chartered Global Management Accountants (CGMA) who also founded an IGCSE Centre, Twins Education, as well as Ian Wong, who is a licensed financial planner.
2. AFTER GST
Now that it has been transformed into zero-rated GST, it means we won’t be charged the additional tax on our purchases until the reintroduction of Sales and Services Tax (SST) effective on 1st September 2018 onwards. Consumers should be able to enjoy the minimal price drop for goods and services in the next few months but unfortunately that doesn’t confirm your daily dose of overly-expensive coffee to be cut in half instantly (oh, how we wish!). Andy Gan says, “There are other factors that contributes towards the changes in price namely the weakening of the ringgit, increasing household debts and spiralling national debt of the Malaysian government.” So before you go on and complain mindlessly, take a good look at how well the country as a whole is doing.