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.
3. GST VS SST
One of the main differences that sets GST and SST apart from each other is how a consumer is able to identify clearly how much GST is charged, compared to SST where it’s a combination of two taxes; the Sales Tax is usually factored into the cost of goods already which means there’s a chance of dishonest pricing with the lack of transparency and the Service Tax applies to certain things that are listed as a ‘taxable service’. Honestly, I prefer knowing exactly how much tax I pay with every purchase, I’m sure many of you would feel the same way.