Professional Documents
Culture Documents
2. Certainty.
The tax rules should clearly
specify when the tax is to be paid,
how it is to be paid, and how the
amount to be paid is to be
determined.
The taxable schedule is payable for every two months and due date of
payment is clearly specified. However, there are two different schedule
of payment 1) payable every odd month licensee (ie: tax received for
January February will be paid on March) and 2) even month licensee
(ie: tax received for February March will be paid on April).
3.Convenience of Payment.
A tax should be due at a time or in
a manner that is most likely to be
convenient for the taxpayer.
4. Economy in Collection.
The costs to collect a tax should
be kept to a minimum for both the
government and taxpayers.
Given 28 days to declare and pay the tax to RMCD offices nationwide.
The medium of payment through the normal counter, easy drop counter
and by mail.
Online payment has been introduced in early 2014 to promote
convenient of payment.
6. Neutrality.
The effect of the tax law on a
taxpayers decisions as to how to
carry out a particular transaction
or whether to engage in a
transaction should be kept to a
minimum.
7. Economic Growth and
Efficiency.
The multiplier effect on indirect
tax system is hardly to be
determined.
Tax ruling and relevant act deemed as not transparent and visible to the
public as the proper treatment and specific guidelines is absent even in
the RMCD website.
The licensee has to come over the counter to get all the information and
normally is lacking the black and white answer.
Depending on the competency of the officer consultancy which maybe
varies among them
The service tax system has so far contradicted with several guideline
principles of fairness and equity, certainty, economy of collection and
simplicity. Thus, this tax system does not meet the neutrality criteria as
it give confusion and also leads to more tax evasion among licensee.
SUGGESSTION
GST was announced as one of the six Strategic Reform Initiatives under
the Economic Transformation Programme.
Government debt capped below 55% of GDP, fiscal deficit would decline
to 3%.
As GST in Malaysia would replace the existing Sales and Service Tax,
any inflationary element is not expected to be significant. At the
originally proposed GST rate of 4 - 6%, prices are not expected to
increase significantly and, for certain goods, e.g. beer, prices are
expected to decrease.
In the 2013 Budget the Malaysian Prime Minister announced a 1%
reduction in income tax rates for individuals in the lower bands from
25% to 24% in 2015. The reduction of income tax rates was given in
anticipation of the imminent transition from the current tax system to a
tax system that is fairer.