Yesterday, I went to a Bank. Well, there's a lot of pension man and women lining up to collected their pension.
The Bank was full and I'm one of the unlucky one who didn't manage to get a sit. Actually I got a sit but gave it up to an older women with a cane.
Some older men then try to give a sit to me after that but then I decided to stand up. After a thank you of course.
Now after a while, an older man who stand beside me asked a questions about my number. I reply in kind saying that my number will take a while to get a call.
He smile at me and then we started a discussion about this and that situations.
On how the cost of living becoming quite high in the Urban's while it still lower in the Kampung. That makes me asked him did he live in Kampung. And of course he said yes.
So, I decided to become someone who don't know anything. When he explain something to me I just asked for clarifications.
Well at one point he's talking about GST. So I asked him that someone inform me that if GST is implemented the prices of a lot of thing will increased.
He just laugh and said that in one way that statement is right and in other way that statement is wrong.
So I asked him in what way that statement will be right and in what condition that statement was wrong?
This was his explanations.
If GST is implemented, some items will see the reduction in prices. This is due to all taxes will be explained in the label.
So, others cannot impose other taxes to the items. Last time, no one will explained those taxes that they impose to the customer. This makes the items has been charges to multiple taxes.
This multiple taxes that increase the prices which sometimes almost 100 to 150% from the factory prices.
GST is really quite fair to the customer but not to those involved in the business of distributions. They the one who usually increasing the prices.
GST will stop them from charging the higher prices for the items.
So the statement that saying the prices of the items will increasing because of the GST proving wrong.
So, I asked about when the statement proving true. His explanation is this.
When the items is tax during the factory stages, this makes the government collecting the taxes early. The manufacturing factory need to factoring the items prices and pay the taxes according to how much they manufacturing in a day.
Unlike last times, they can just manufactured what ever quantity they wanted and by end of the year they just pay the lump sum taxes.
With GST they need to count the taxes per items. This never effect the manufacturer but it will effected the end customer.
What happen is, if this items cost plus taxes is RM10, those who use one item only pay 60 cents but those who use 2 items need to pay RM1.20. So the prices will be increase to some especially the one who used a lot of items.
I said , it this is true that the government taxes revernue's will remain the sames as the manufacturing still paying the same amount of taxes, right?
His explainations was,
The revenues will increasing because manufacturing company need to pay the prices according to the quantities they produces.
Last times they only declare how much their manufacturing cost and how much their gainning. Who know how much they can produce with the quantities they declared.
This actually increasing the govornment revenue's because the manufacturing company usually can get a much higher quantity than what they projected.
It becomes efficient because the manufacturing companies now need to declare their productions quantities because the taxes base on quantities. The more they produce, the more taxes they need to pay.
My oh my, this guy know more than most University graduates that I know. Right or wrong, it is his opinions.
My takes is, this guy is smart even thought he said he finished school before taking his MCE.
Those who don't know about LCE, it was an examination equalisation to SRP now. Each student need to pass Lower Certificate Examination in order to continued to form 4.
Just like SRP/PMR once upon a times before the act that required student need to finish form 5 was implemented.
Yeah it was a lot harder to pass than older SRP or new SRP or PMR.
And if this old guy understand the way of GST, how will it reflect to the younger generations that majority of them having a degree in their certification storage's hehhehheh.
Oh! Maybe it is because those who manage to study in middle school during LCE and MCE era's was more brilliant than the younger generation right now? hehehehe
But then It will not explained LKS or KS or WA, hmmm
But then they were special in their own classes right? The class of the special elites hehhehheh
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