GST kepala pening la..

PM Najib has announced a list of items that would not be subject to GST.
What are they?

a) fruit,
b) coffee powder,
c) various types of noodles,
d) almost 2,900 brands of medicines,
e) reading materials and newspapers,
f) electricity consumption band not subject to the GST has been increased to 300 units from 200.

Based on my experience with GST, it may difficult to apply though the intention may be good. Let me illustrate.

Fruit is exempted from GST. So no GST when you buy banana, rambutan as fruits from trees.

Do you apply GST on cut/sliced fruit platter ordered in a restaurant? Do you apply GST on fruit juice? Do you apply GST on banana cake? Where is the complete list of fruit? Is carrot a fruit or vegetable?

In my humble opinion, we should go for a straight application of GST on ALL goods and services and utilise cash transfer to neutralise the regressive impact of GST on the low-income group. Reduce compliance costs overall.

Pic – Business Times 20141011