some good reflections

1.                   Impact of GST to Sabah is Got Sabah Trap leading to Got Sabah Tragedy!!!

2.                    Impact of GST to Malaysia is Government Self Trap or Government Self Tragedy.

3.   With GST, it is a whole different approach to do business with possible adverse impact arising from withheld consumers spending for an initial period that is enough to tilt the trend towards business closure resulting in decline in earning and many more become jobless.

4.The immediate challenge for various businesses is the hurdle to register or not to register or face the hefty penalty hence it is both costly to register or otherwise in various practical scenarios. 

5.So have anyone done a fully researched paper on how GST at various rates impacting Malaysia vis-à-vis Sabah

6.The minimum wages for basic workers to survive depending on the rates of GST?

6.1If wages need to be increased, how much would be sufficient?

7.The level of prices increases especially for the essential items depending on the GST rates?

8.Would fuel attract GST?  If so how would this impact the economy as rural Sabah would be hard hit?

9. Would houses attract GST and if so how the prices go up especially those houses under construction when all raw materials would go up in price too?
10. While GST inputs and outputs would be offset in a two or three month cycles, how would such cycles affect the cash flows of the businesses?
11. At the moment, Government Service tax collected in Sabah is retained in Sabah and would GST be retained in Sabah and if so how much would likely be retained in Sabah possibly to bring reliefs to some sectors?
12. If GST collected in Sabah is retained in Sabah, would there be a restriction that such increased amount be disallowed to be applied for development projects unrelated to trade for matching purpose?
13. If GST is implemented, all existing taxation like corporate and income taxes would be adjusted downwards and how would this be addressed with the initial burden of GST?
14. It maybe inevitable that black market would thrive once GST is implemented and is there any acceptable level before the disruption bites into the economy?

15. Corruption for the implementation agency can be a factor and is there any provision for this to be thwarted?

16. For Sabah is there a model for GST given the prevailing economic indicators at various rates of GST in the context of productivity and consumption and the level of risks that the economy can be adversely affected with hardship for most people especially Sabah people are already finding it hard.  If there is no model done, then Sabah should not see GST in the immediate future.

17. Do we have certain specific GST schemes for certain businesses like sundry shops, secondhand car dealers, contractors/sub contractors with Government agencies?  Too costly and troublesome to issue bills for each sale for the output tax like restaurants and supermarket/minimarket.

18. How would the 6% impact the Malaysian budget in 2015 and beyond as Government and its agencies are also consumers?

19. GST collection and debts?  Not all invoices are collected in time to file the GST returns and some may turn out to be bad debts.  How do the registered companies concerned account for this?

20. Manual system is allowed but the Government always emphasis electronic system to do filing.  Manual system would give the marginal companies over the threshold some confidence in terms of costs and management capacity.

21. In the uncertainty of entry of GST, it is up to the business communities to re-invent themselves to be competitive in a range of approaches, with the threshold and the penalties in mind.  Is it worth the costs to get registered and in preparedness to be the collector of GST when the level of business post GST is uncertain.

I can offer some good professional service as I had the hand-on experience when Great Britain first introduced VAT in the early 1970s.   Joshua Kong 6013-8394513