Friday, March 27, 2015
How do we implement GST with less than GST tax agents of 3,000?
How do we implement GST with less than GST tax agents of 3,000?
There are 400,000 clients registered for GST -big and small and largely SME with turnover between RM500,000 to RM2,000,000.
Are such 400,000 taxpayers/businesses suddenly so clever to comply with the GST which is complex in Malaysia?
I believe it if BN/UMNO greedy ILLEGITIMATE government under Najib implement on 1 April, 2015, most of these sme business owners would end up paying lots of unsustainable penalties and likely end up in jail. Then who would be in business?
If we have 400,000 clients, each client would need minimum 2 staff well versed in GST to handle this function, then we need 800,000 trained staff to implement GST.
Such companies - many accounts done by owners themselves/partimers with some part time assistance from junior people - would be hard pressed to deal with daily chores and GST compliance is a burden. How to cope with business matters now burdened with more penalties?
If the Government is wise, and they think software is the answer to everything, then it is damned wrong.
Each business has its own intricacy and software costs is draining much cash resources even before GST is started and the solution of GST is yet untouched and unsolved.
If the Government is wise, there should have trained a few hundred thousands of graduates in GST and subsidise them (for at least two years) to work for firms in need of such staff to comply. Afterall all the GST registered companies collect on behalf of the Government, that revenue under GST.
So now it is too late and many businesses may just decide to give up to avoid heavy penalties and jail sentences- not once but all the way daily when offence can be committed in compliance.
When too many businesses give up, the economy would be adversely affected by various impacts namely prices across the board would rise (demand and supply), jobless people would increase, more families can be destitute, debts would rise, crimes would rise, ill health in society would exacerbate, and other social ills like break up of families and children go without education and other problems could be endless.
The worst can be in Sabah. Hence I advocate zero rate for Sabah for 5 years until Sabah catch up with Malaya.
We all need to learn from mistakes aplenty but GST would generate a new set of worse mistakes.
Joshua Y. C. Kong
PM of IGGG M.
http://fresh-air-in-iggg.blogspot.com
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