Saturday, January 9, 2016

Business Friday

When Malaysian grumble about GST implementation, the businessman and companies were not much worried about it. Although companies need to enhance their accounting/billing system, employ additional headcount to handle GST filing.

Of course for public, certain companies tend to raise the price (although they are not suppose to), which burdens the "rakyat.

For business, when GST is filed on monthly basis, indirectly they are declaring their revenue and expenses. Which means, they can't do creative accounting anymore. Off course there are few loopholes, where certain company doesn't issue receipt, thus it becomes their black money.

Next, for small companies which is below threshold of RM500,000, they can still register for GST and claim back the GST amount. Thus, it would not increase their operating cost by absorbing suppliers' GST.

By implementing it, it would give better view on the business income and tax collection for the country, which indirectly boost transparency. This attracts foreign investors, especially USA to perform business with Malaysia.

It's said that USA may abolish VISA requirements for Malaysia soon, which means, we can get VISA on arrival (similar to ASEAN countries) and no need to queue outside the embassy.

Furthermore, Malaysian tax rate for 2016 is 24% lesser than 1% last year. Thus, business can prosper with implementation of GST. That's where KLCI index didn't drop drastically as it was during 1997 crisis although USD price increased.

No comments: