KUALA LUMPUR, March 31 — It’s just a day before 30 million Malaysians make history together, letting in the Goods and Services Tax (GST) and flushing out the old Sales and Services Tax.
Putrajaya calls it the revolutionary and transparent tax system that will diversify the government’s income source, economists sigh with relief at this long-awaited economic reform, the federal opposition caution that the poorer Malaysians will suffer amid already rising living costs.
But the riddle for many is what goes up? And will the wallet shrink faster as the price grows? Could it be true that some items will become cheaper with the GST rate of six per cent taking the place of the old 10 per cent sales tax? But what about claims that more items will be taxed than ever before under this broad-based consumption tax?
For now, here’s a rough guide of what prices are expected to go up or down when the GST kicks in tomorrow:
