Friday, March 13, 2015

3 Realization on Government Service Tax

3 ways looking at the short form.
In Malays "Geng Sama Tamak"
In English " GangSTer"
Actually is Government Service Tax

Looking at these Scenario and tell me what do you think?

A person by withdrawing from bank machine is charged 1 dollar and the tax for the service charge is 6%. That's how he was paying $1.06. He is driving along the highways and reaching a toll for $1.00 service charge 6% however the counter lady taking round figure $1.10 because of her boss deemed effective and easier exchange. How much do the consumers actually have to deal with? Its no longer 6% but 16% for one way trip. Returning shall be another 10%. Making 26%.

Second businessman is buying an asset for selling. The premise costs 1million dollar with 6%, it was marketed at $1,060,000. He doesn't have sufficient cash in hand and therefore he is getting bank loan, bank approved a repayment scheme of 4%+BLR over 20 years which is quite standard. However for the 10% of overall asset cost incurred 6% process fees, it is added up to the 16% $169,600 and over the 20 years this additional 6% will cause the already doubled value of 2 millions to double to 4 millions. Rough calculation 20x169k for Tax alone disregard cumulative interest yet.

Then he says, I will not hold the debts forever I shall resell them within 3 years so the cash flow is manageable and therefore he adds  another 6% to his loan as a guide of leveraging and selling this asset for selling price at least 4.24 million.

Case 3, when the third buyer purchasing from the second businessman, she is to pay for another 6% from the listed price.
She probably might have forgot whether her income tax has accounted all the taxes that she have paid for previously. But I doubt it since this service has been newly introduced and it was quite a figure. Therefore , if indeed so to carry forward next tax filing, the reimbursement or deductible for what have been paid for should weight 400% in order to keep closer to the balance.

This is how the oppression come about of the service charges , interests and taxes superimpose. You see prices and costs can sky rocketing like crazy. Who are we to live with this? Who are you to oppress or impose to us?

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