What is GST?
Our Rakyat do not fully understand the implication of GST, until it is implemented and prices of goods spiralling upwards. By then it is too late.
A rich country like Singapore introduced GST at 3%.
GST is a multi-stage tax system. (TRY TO UNDERSTAND THIS !!!!!)
Everything the sellers sold, from manufacturer, wholesaler to retailers, collect GST for the government. Unlike the the current sales and service tax (SST) is a single-stage tax. Only one party along the supply chain collects the SST for the government. If the manufacturer collects the tax, the rest are not allowed to collect.
Just imagine every seller add GST when they sell. ( READ N TRY TO UNDERSTAND THIS !!!!! )
For example:
.
1) Manufacture to Wholesaler - RM 1.00 + 4%
( RM 0.04 ) = 1.04
2) Wholesaler to Retailer - RM 1.04 + 4%
( RM 0.42) = 1.082
3) Retailer to Consumer (idiots like you and me)
- RM 1.082 + 4% ( RM0.043) = 1.125
YOU AND I HAVE TO PAY A TOTAL TAX OF 12.5% or RM 0.125 FOR EVERY RINGGIT OF THE MANUFACTURERS PRICE ON THIS THREE TIERS SYSTEM.
If the supply chain is longer than 3 stages, the consumer ends up paying 4% more for each addition stage.
Eg. Manufacturer to Agent (4%) to
Wholsaler (4%) to Retailer (4%) to Consumer (4%)..
This final price that idiots like you and me have to pay is RM 1.17 equivalent to 17% TAX or RM0.17 for every Ringgit of the manufacturers price) on this FOUR tiers system.
If the GST is not stopped, the Rakyat will end up paying very very very high prices for everything. (That is why it is called the GO SQUEEZE THEM - GST)
This is the main reason why the GST was introduced - to increase the government's income.
The next logical question is -
Where did all the tax money collected go??????
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