What is GST?

If this info is correct, we’re in big trouble.  Price of EVERYTHING is going up by at least 12%.

Go Squeeze Them(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%.                          

A poor Malaysia wants to implement GST at 4%.  (Note:  It is 6% as announced in the Budget 2014!)                          
                                                                         
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:

The current Sales Tax for Toilet soap is 10%.

With GST, the manufacturer pays 4% to the govt when he sells it to the Wholesaler, the Wholesaler pays the govt another 4% when he sells to a Retailer; and when the Retailer sells it to the Consumer, he pays another 4% to the govt.

The Consumer actually ends up paying more than 12% in cummulative GSTs for the same piece of soap or > 20% more in taxes. (10% vs 12%+++)
.
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%).. 

Total 16% ++++ (vs 10%) or 60% more in taxes!!!!
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) 

                                                                                                                                                 

Now do you agree when the rakyat say that Malaysia is going bankrupt?  

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??????            

(Courtesy of forwarded mail from Chai Bui Lun on 04/10/2013 before Malaysia Budget 2014 announcement on 25/10/2013)