You know the time when you walked into McD or KFC, and you order a combo meal which costs you RM7.90… you’ll end up paying RM8.30. Ya’ know, you have to pay 5% gomen service tax. Ok right? Cause we are all used to it.
Now, imagine you walked into Kedai Kopi What-Fatt-What-Fatt, you order a “Char Kuey Teow” which usually costs RM4, and you end up paying RM4.20? How about that? Do you know it may be happening?
Now, a reader told me today that reading all my ‘serious’ entries made her ‘fall asleep’, she prefers my entries regarding my views on life. Fair enough, but before you fall asleep… imagine all the new blouse, new pants, new bras, new panties that you’re gonna buy may all be subject to tax? Would you like to know more?
Ladies and genitalmen (term stolen from Wingz), the name of the game is Goods and Services Tax (“GST”). Just a brief introduction, the gomen announced some time in Sept 2004 (during the 2005 Budget announcement), that GST will be implemented in this country. The supposed implementation date was 1 Jan 2007.
Why it is not implemented yet? Apa jadi? Well, the gomen announced some time in early 2006 that implementation of GST will be postponed. What’s the reason for this act of generosity? No one knows for sure. And for the sake of being a responsible blogger, I shall not speculate.
Now… the keyword there is ‘postponed’… the gomen didn’t say GST will be abolished. So there will be a time when you and I may need to pay tax for our ‘chee cheong fun’, roti canai, bak kut teh, condoms, vibrators, etc. The million dollar question is of course …. When?
Tax experts have dubbed GST as an ‘efficient tax collection’ tool. Ya’ know, all those fellas who don’t pay every year, those fellas who make money from those ‘cannot-see-light’ activities, all have to pay tax when GST is implemented. I mean… all have to eat roti canai and bak kut teh right? And all have to buy condoms also right?
Jokes aside… what does GST means? GST is a tax levied on ALL goods and services (except those exempted by law). Therefore, to me, GST means more money out of my pocket because every time I spend, I need to pay tax. GST means all those vultures out there who are looking for opportunities to increase prices of their goods will do so at a flash, because they have to pay tax when they buy their raw material. They may be able to able to claim back their ‘input tax’ but that’s too technical to be discussed here. In a nut shell, GST means poorer you and me, unless you are freaking rich already till you don’t care if you have to pay tax when you buy condoms.
Back to the million dollar question… when will GST be implemented? A story was once told about a guy who will treat his gf extra nice when he wanted sex. Basically, before he wanna screw his gf, he has to treat her nicely.
Last year, during the 2007 budget announcement, gomen announced that corporate income tax rate will be reduced from 28% to 27% and subsequently to 26%. Last month, gomen announced that RPGT will be abolished. Can you see any screwing coming? Well… maybe, maybe not.
On a related note, reducing corporate income tax means companies will have more money from tax savings and they are “supposed” to use those savings to pay better salary/bonus to their employees so that the employees can survive GST, if GST is implemented. Well, do you think companies will do that? Hmmm… employers are a different species from the guy that I mentioned earlier. That guy will treat his gf nicely before he screws… as for employers… they just screw us. Period.
On another related note, did you feel pissed when gomen increased toll charges? Every Tom, Dick and Harry and Mary, Jean and Jane were pissed, some even went and protests and shout vote out the gomen la, vote this vote that la. Judging by this, what do you think will happen when all of us have to pay tax for our roti canai, bak kut teh, chapatti and condoms? Who will you vote?
Therefore… perhaps, just perhaps, the gomen will not implement GST until election is over. And since gomen said election will not happen till 2008 or 2009, then I guess we are quite safe la. But… just but… if there is a snap election… get your ass ready for a royal screwing.