This article is for all those that claimed that GST is good for the public*
This analysis is done on an average monthly income of RM 4000/- ( Annual income totalling RM48,000/-) :-
1. Tel/TNB/Internet/Astro, mthly say RM400/mth, payable GST is RM24/mth *RM288/per yr*
2. Groceries RM600/mth, payable GST is RM36/mth *RM432/per yr*
3. Food/meals RM1,500/mth, payable GST is RM90/mth *RM1,080/- per yr*
4. Other expenses RM1,500/mth, payable GST is RM90/mth *RM1,080/ per yr*
*Total GST = RM2,880/yr..*
Working backwards from FY2017 tax table, with the standard personal reliefs normally claimed, the amount of *RM2880/-GST* payable will work out, equal to income tax payable on an annual gross income of approx *RM91,500…*
I bet you have never seen GST this way…..right!!!
So for a start the person with an annual income of only *RM48k* is now paying a GST amount which is equivalent to income tax deductible for *RM91,500.*
And if an *unemployed or retired* person has the same level of expenses illustrated above and living on savings only, (s)he through the aggregate GST paid (s)he can be deemed to have an income of RM 91,500 p.a…
When in fact he has ZERO income !!!
*So this is how the public being screwed with GST..*