He also said SST exemption for sectors directly affected by the pandemic should be extended until year-end.

Anwar said it was high time for Putrajaya to take certain measures to cushion the economic impact on the people.

He also proposed that cash flow assistance be provided for small and medium enterprises (SMEs) that are impacted by supply chain disruptions; and loan forbearance offered by banks to low-income households that are coping with late mortgage payments.

“The economic stimulus measures introduced by the then finance minister Lim Guan Eng were released before the second wave of Covid-19 infections.

“These initiatives need to be extended if we are to ensure that viable businesses - especially SMEs - can weather the crisis.

“Evidence indicates that the most efficient method to maintain social welfare during this type of economic disruption is via direct cash transfers.

“Building on the measures in the existing stimulus, the Finance Ministry should increase Bantuan Sara Hidup (BSH) payment for May 2020 and consider additional one-off cash payments for all BSH-eligible households.

“I also encourage the issuance of employment insurance to be available for employees who are forced to go on unpaid leave, focusing on sectors directly impacted by Covid-19,” he said.

Anwar also called on the government to enforce stronger rules to enhance social distancing, including making a clear decision on halting public gatherings as well as suspending schools and religious observances for some time.

Aside from that, he said employers, both in the civil service and private sector should assist their employees by implementing work-from-home policy as much as possible.

“We must give serious consideration to closing non-essential commercial and retail outlets for a period to control the rapid spread of infection.

“We should encourage the use of e-commerce and e-delivery platforms to keep people away from public spaces.

“Additional foreign travel restrictions need to be adopted as the virus manifests and spreads in other countries.”

Anwar said it would be prudent for the government to increase the RM20 billion economic stimulus package which was announced by former interim prime minister Tun Dr Mahathir Mohamad last month, considering that the second wave of Covid-19 has reached Malaysia.

“Let me be clear. It is the government’s responsibility to undertake these measures and the burden should not be passed to the public.”

The PKR president also urged all politicians, especially those from the ruling Perikatan Nasional pact to stop their politicking during these troubled times.

He called on the government to emulate other countries’ efforts in managing their exposure and risk to Covid-19.

“On the contrary, I sense a lack of urgency, focus and decisiveness by the new Cabinet in addressing the health and economic crisis we face.

“I urge the Prime Minister (Tan Sri Muhyiddin Yassin) to stop focusing on the political manoeuvrings of his Parti Pribumi Bersatu Malaysia and devote his full attention to the crisis affecting the people,” he said.
 

He also said SST exemption for sectors directly affected by the pandemic should be extended until year-end.

Anwar said it was high time for Putrajaya to take certain measures to cushion the economic impact on the people.

He also proposed that cash flow assistance be provided for small and medium enterprises (SMEs) that are impacted by supply chain disruptions; and loan forbearance offered by banks to low-income households that are coping with late mortgage payments.

“The economic stimulus measures introduced by the then finance minister Lim Guan Eng were released before the second wave of Covid-19 infections.

“These initiatives need to be extended if we are to ensure that viable businesses - especially SMEs - can weather the crisis.

“Evidence indicates that the most efficient method to maintain social welfare during this type of economic disruption is via direct cash transfers.

“Building on the measures in the existing stimulus, the Finance Ministry should increase Bantuan Sara Hidup (BSH) payment for May 2020 and consider additional one-off cash payments for all BSH-eligible households.

“I also encourage the issuance of employment insurance to be available for employees who are forced to go on unpaid leave, focusing on sectors directly impacted by Covid-19,” he said.

Anwar also called on the government to enforce stronger rules to enhance social distancing, including making a clear decision on halting public gatherings as well as suspending schools and religious observances for some time.

Aside from that, he said employers, both in the civil service and private sector should assist their employees by implementing work-from-home policy as much as possible.

“We must give serious consideration to closing non-essential commercial and retail outlets for a period to control the rapid spread of infection.

“We should encourage the use of e-commerce and e-delivery platforms to keep people away from public spaces.

“Additional foreign travel restrictions need to be adopted as the virus manifests and spreads in other countries.”

Anwar said it would be prudent for the government to increase the RM20 billion economic stimulus package which was announced by former interim prime minister Tun Dr Mahathir Mohamad last month, considering that the second wave of Covid-19 has reached Malaysia.

“Let me be clear. It is the government’s responsibility to undertake these measures and the burden should not be passed to the public.”

The PKR president also urged all politicians, especially those from the ruling Perikatan Nasional pact to stop their politicking during these troubled times.

He called on the government to emulate other countries’ efforts in managing their exposure and risk to Covid-19.

“On the contrary, I sense a lack of urgency, focus and decisiveness by the new Cabinet in addressing the health and economic crisis we face.

“I urge the Prime Minister (Tan Sri Muhyiddin Yassin) to stop focusing on the political manoeuvrings of his Parti Pribumi Bersatu Malaysia and devote his full attention to the crisis affecting the people,” he said.
 

He also said SST exemption for sectors directly affected by the pandemic should be extended until year-end.

Anwar said it was high time for Putrajaya to take certain measures to cushion the economic impact on the people.

He also proposed that cash flow assistance be provided for small and medium enterprises (SMEs) that are impacted by supply chain disruptions; and loan forbearance offered by banks to low-income households that are coping with late mortgage payments.

“The economic stimulus measures introduced by the then finance minister Lim Guan Eng were released before the second wave of Covid-19 infections.

“These initiatives need to be extended if we are to ensure that viable businesses - especially SMEs - can weather the crisis.

“Evidence indicates that the most efficient method to maintain social welfare during this type of economic disruption is via direct cash transfers.

“Building on the measures in the existing stimulus, the Finance Ministry should increase Bantuan Sara Hidup (BSH) payment for May 2020 and consider additional one-off cash payments for all BSH-eligible households.

“I also encourage the issuance of employment insurance to be available for employees who are forced to go on unpaid leave, focusing on sectors directly impacted by Covid-19,” he said.

Anwar also called on the government to enforce stronger rules to enhance social distancing, including making a clear decision on halting public gatherings as well as suspending schools and religious observances for some time.

Aside from that, he said employers, both in the civil service and private sector should assist their employees by implementing work-from-home policy as much as possible.

“We must give serious consideration to closing non-essential commercial and retail outlets for a period to control the rapid spread of infection.

“We should encourage the use of e-commerce and e-delivery platforms to keep people away from public spaces.

“Additional foreign travel restrictions need to be adopted as the virus manifests and spreads in other countries.”

Anwar said it would be prudent for the government to increase the RM20 billion economic stimulus package which was announced by former interim prime minister Tun Dr Mahathir Mohamad last month, considering that the second wave of Covid-19 has reached Malaysia.

“Let me be clear. It is the government’s responsibility to undertake these measures and the burden should not be passed to the public.”

The PKR president also urged all politicians, especially those from the ruling Perikatan Nasional pact to stop their politicking during these troubled times.

He called on the government to emulate other countries’ efforts in managing their exposure and risk to Covid-19.

“On the contrary, I sense a lack of urgency, focus and decisiveness by the new Cabinet in addressing the health and economic crisis we face.

“I urge the Prime Minister (Tan Sri Muhyiddin Yassin) to stop focusing on the political manoeuvrings of his Parti Pribumi Bersatu Malaysia and devote his full attention to the crisis affecting the people,” he said.
 

GST has drawn quite a bit of flak over the years and public opinion is generally that GST has caused prices of goods and services in Malaysia to go up without the country seeing significant benefits to the additional tax revenue collected. For businesses, GST claim back on tax has been difficult, can be declined, and requires a minimum RM500,000 in annual sales before being claimable. There are also middle men who take advantage of GST to raise prices and use the tax as a convenient reason to make more money.

While SST will cause the government a tax revenue drop, estimated at RM25 billion, SST is seen as a less progressive form of tax and many countries have moved on to GST. Experts have said that prices should come down but there could be a mixed impact from the reintroduction. The sales tax is based on the manufacturing cost or import cost, while the service tax could cover a wider range of services, therefore a higher price or charges for services rendered on the whole.

The differences between SST & GST

The example below makes certain assumptions for simplification purposes, just to show the differences between SST & GST.

So depending on the SST coverage, consumers could be paying the same or slightly more for certain items. Overall, the tax burden will be reduced and that is the overall increase in disposable income for consumers. Depending on the types of goods and services that will be subject to the SST, the price impact will vary by income groups according to what is consumed.

The Abolishment Of GST

As the new Pakatan Harapan government carries out its pledge of abolishing the goods and services tax (GST) and bringing back the sales and services tax (SST), many are still confused between the two. We put the 2 tax systems side-by-side as a quick comparison and lay it out easily for all to understand.

From 1st June – 31 August 2018, GST rate will be reduced to 0% from 6%. Now while many are celebrating this reduction of the GST rate, there is also a huge number that is mistaking it for the absolute dismissal of the GST altogether on the 1st of June. This is not accurate. The government has announced that the GST will be replaced and abolished by the SST on the 1st of September.

This is because as with all tax policies, the removal of the GST is dependent on our parliament repealing the GST Act of 2014 before it can be fully abolished. This also involves the changing of various tax reporting and filing protocols that have become commonplace since its introduction in 2015.

Image source: NST

Image Source: DataTree.my

Sales and Services Tax (SST)

The Sales Tax is only imposed on the manufacturer level, the Service Tax is imposed on consumers that are using tax services. SST rates are less transparent than the GST which had a standard 6% rate, the SST rates vary from 6 or 10%.

Goods and Services Tax (GST)

GST covers everyone, retailers, and trades. The sales tax only covers manufacturers while services tax covers certain prescribed services like professional services. The suppliers could claim back the GST from the government, however, the government does not instantly refund the GST claims, causing issues for the companies operating cash flow.

“GST as you know covers everyone, retailers and traders. On the other hand, sales tax only covers manufacturers while services tax covers certain prescribed services such as professional services, so there must be a thought process on the transition to SST.” – PricewaterhouseCoopers Taxation Services Malaysia (PwC) executive director and head of indirect tax Raja Kumaran

The infographic shows a quick overview of the differences between the GST and SST:

So will prices of goods drop or increase?

The answer to this debate isn’t so straightforward, as it all depends on a number of factors such as:

• How many levels there are in the product supply chain between manufacturer and consumer.
• Different products and services are affected differently; top-up cards, cars, mobile phones food items.
• Prevailing tax exemptions for businesses.

We Malaysians, can expect prices to adjust differently based on the type of good or service, and that there is no actual certainty or predicted outcome that can be expected from this change—the only thing to do is to wait and see just the kind of rates our government will set for the upcoming SST, and what items will or will not be affected.

SINGLE PRICE POLICY IN GST!!!
"Single Pricing Policy Will Be Implemented This Year, Minister Says". THE MALAYSIA ONLINE. Web. 2 May 2017.

Why is Malaysia introducing GST
"Malaysia Goods And Services Tax (GST)". Malaysia-gst. N.p., 2016. Web. 19 Oct. 2016.

Goods and Services Tax (GST) is proposed to replace the current consumption tax i.e. the sales tax and service tax (SST). The introduction of GST is part of the Government's tax reform programmed to enhance the efficiency and effectiveness of the existing taxation system.

Introduction of GST offers Malaysian consumers and businesses various benefits including:

Improved Standard of Living

The revenue from GST could be used for development purposes for social infrastructure like health facilities and institutions, educational infrastructures and public facilities to further improve the standard of living.

Lower Cost of Doing Business

Under the current system, some businesses pay multiple taxes and higher levels of tax-on-tax (cascading tax). With GST, businesses can benefit from recovering input tax, thus reducing cost of doing business.

Nation-Building

GST is a better and more efficient method of revenue collection for the government. More funds can be channeled into nation-building projects for progress towards achieving a high income nation.

Fairness and Equality

With the GST, taxes are levied fairly among all the businesses involved, whether they are in the manufacturing, wholesaling, retailing or service sectors.

Enhanced Delivery System

GST will be administrated in a fully computerized environment, therefore speeding up the delivery, especially for refund claims. This makes it faster, more efficient and reliable.

Increase Global Competitiveness

Prices of Malaysian exports will become more competitive on the global stage as no GST is imposed on exported goods and services, while GST incurred on inputs can be recovered along the supplies chain. This will strengthen our export industry, helping the country progress even further.

Enhanced Compliance

The current SST has many inherent weaknesses making administration difficult. GST system has in-built mechanism to make the tax administration self-policing and therefore will enhance compliance.

Reduces Red Tape

Under the present SST, businesses must apply for approval to get tax-free materials and also for special exemption for capital goods. Under GST, this system is abolished as businesses can offset the GST on inputs in their returns.

Fair Pricing to Consumers

GST eliminates double taxation under SST. Consumers will pay fairer prices for most goods and services compared to SST.

Greater Transparency

Unlike the present sales tax, consumers would benefit under GST as they will know exactly whether the goods they consume are subject to tax and the amount they pay for.

GST Malaysia Calculation

 

 

For simple straight forward calculation, for Pemborong Calculation, assuming cost is RM30 and selling price RM40, Pemborong is able to make a profit of RM10.00, this profit is a Value Added differences, which subject to GST 6% X RM10.00= RM0.60.

However the GST has to be done through in accounting for cash flow as for the following
a) Paid to the vendor   (RM31.80)
b) Received from Customer RM42.40
c) Pay to GST Custom (RM0.60)


You are getting the same profit RM10.00 with the a) b) c) above. Custom getting RM0.60

However if ignoring input tax, it would be
a) Paid to the vendor   (RM31.80)
b) Received from Customer RM42.40
c) Pay to GST Custom (RM2.40)

You are getting the same RM8.20 profit only. Custom getting RM2.40.



How GST is going to affect our lives. Effective 1 April 2015, Malaysians is implementing Goods and Services Tax (GST) when they purchase products or seek services. There are standard rated 6% or zero rated or exempted and out of scope supplies.

"Persons" having businesses with annual sales turnover exceeding RM500,000 are liable to be registered under GST. "Persons" include an individual, sole proprietor, partnership, company, trust, estate, society, union, club, association or any other organization including a government department or a local authority which is involved in the business of making taxable supplies in Malaysia. 
The annual sales turnover can be determined based on either: 

• The total value of taxable supplies of the current month and the previous 11 months, or
• The total value of taxable supplies of the current month and the next 11 months.

For an average of monthly sales achieve lower than RM40,000 or based on how the financial statement being submitted previous year, everyone should have an idea GST need or need not to register.


Based on the table listed above, a business operator needs to register themselves in GST before able charging output tax to consumer and claim input tax from supplier. They may experience the following :-
a. Daily detail sales records is being captured.
b. Daily detail purchase records is being captured.

While non-taxable products and services items would be listed as well during this period.

Since the records is becoming TRANSPARENT in such a way that they might experience some impact over the accounts records being presented before 1 April 2015, and after GST implementation. Therefore during year 2014, business operators are recommended to hold a proper accounting records, and to do a proper stock check  

a. To ensure what type of stock in the business
b. To ensure stock value is captured

To facilitate the stock take process, online stock take system is available, which uses mobile smartphone that has internet access and touch screen capabilities. All data captured is able to translate into Microsoft Excel format. Kindly request for demo.

Market already has a mobile barcode capabilities to capture data for stock taking on the mobile phone. Well, GST create a tedious job for accounts people and book keepers. Please do ensure you have kept the records in order.

One of the focal points of any retail or hospitality business is the cash register. The ability to process transactions and tender cash are essential to the efficient operation of the enterprise. If you have a lot of cashtransactions, replacing the cash registers with a Point-Of-Sale (POS) system save you money. A POS system is computer software and hardware networked together to track sales and inventory as they occur. POS systems will solve a multitude of problems in your business.

Since implementation of a POS system is requires a large investment in time and money, the selection of software and hardware requires careful research into the features available and associated costs.

Generally, if your business has annual sales of $500k or more, you can achieve considerable savings and benefits from a POS system. From a Return-On-Investment perspective, it should pay for itself in between 1 and 2 years. For the new business, a POS system is a smart investment. The savings in labor hours and increase in efficiency makes balancing staffing easier, and the POS system automates many time-intensive tasks. Most POS software helps you stay aware of how your business is performing.

Many owners and manages find that the reports generated from the POS system invaluable in the day-to-day and long term management of the business. From revenue and profit reports, ordering reports and product sales reports, the POS system offers a perspective of the total business that is difficult to grasp in other ways.

Here are some of the advantages of using a POS system to track and manage your business:

• Reduce Shrinkage - since inventory quantities are tracked in real time, understanding shrinkage becomes easier. Every modern POS system includes receiving and inventory functions. Proper use of these functions helps pinpoint the causes of inventory loss, reduces "out of stock" conditions and makes overall business management easier.
• Manage Specials - POS systems automate the process of tracking current and marked down pricing. Discounts, coupons and promotions are often critical to attracting and retaining business. POS systems excel at managing and reconciling short-term discounting automatically.
• Maintain Control - Many business owners discover that efficiency and customer service suffer when they're not on site. POS systems give you the ability to track volume and performance when you're not on the floor or you're busy with other tasks.
• Improve Efficiency - POS systems allows your staff to tend to revenue generating tasks such as helping customers.  It eliminates the need to double-check inventory disparities and cash register reconciliation. POS systems dramatically reduce the effort required to do inventory and other repetitive paperwork. Improved efficiency means higher customer satisfaction, lower costs and higher sales.
• Timely and Accurate Reports - POS systems give you the ability to analyze sales data. You can measure the effectiveness of pricing or advertising campaign. You'll know what items need to be ordered and in what quantity. You can identify high margin items and promote them further. You can easily calculate daily gross revenue, cost and profit. Historical data analysis helps to forecast your future needs.
• Improve Customer Satisfaction - Using a POS system with barcode scanner will significantly speed up the check-out process. It gives you the ability to recognize your best customers and reward them for their patronage. It can easily collect customer data (from credit card transactions) that you can use for targeted advertising and incentive programs.
• Manage Using Remote Access - Many POS system software packages give you the ability to manage the system while mobile. Whether you're traveling between stores or taking a day off, remote access gives you the ability to see what's going on at the location and take action when needed.
• Flexible Expansion Options - Most POS system software gives you the ability to add registers and administration computers. If you have an eye to expansion, make sure that you can connect the multiple stores via the web or other connection method. This will allow you to use a single system to manage all your locations.

No matter what type of retailer you are, adopting a POS (point of sale) system can turn your business around by providing an all-in-one solution to a multitude of everyday issues. Inventories that fail to match tallies, unrecorded sales, human errors and the time wasted on correcting them are all fairly common problems faced by retailers on a daily basis. They are all easily avoided when using a POS system that accurately collects and records data, allowing you to really see how your business is functioning and how to continually improve it.

When it comes to inventories, organisation and consistency is key. Not just with delivery either, but each and every sale, damage and complementary giveaway. Imagine a system that automatically logs all of these in real time and saves them to a database across a network that you can access remotely. Furthermore, you can collate the data for detailed analysis allowing you can see exactly what the most popular product is and what is not and how and when it’s being sold.

The same goes for reductions and special offers. Unlike traditional manual cash registers, POS systems automatically calculate and track changes to pricing whilst simultaneously updating the inventory. This makes markdown management far easier as well as giving clear feedback on how effective any promotions are, right down to the last penny.

The thought of employing new technology in your business may seem a little daunting, to say the least. With POS systems however, they are designed to be user friendly, with a sole purpose of making life easier and business better. They allow staff to focus their attention on the customer, as well as the physical preparation and sale of products, cementing the most important values of retail.

POS systems can also track staff themselves: the times and hours worked and the number of transactions completed. This is not isolated to one location either. Multiple interfaces in different outlets all serve the same database, ensuring consistency across the board, in pricing, stock and accounts.

What you do with the data collected by your POS system is up to you. More and more manufacturers and suppliers are opening to statistical feedback that enables them to adapt their own services to the needs of their clients and customers. Likewise, the more you can learn how to analyse your data, the more you can grow your business. Wastage is costly and for the most part unnecessary, but often overlooked or not properly recorded. POS systems do the job for you.

As is the case with many computer-based systems, POS systems come with numerous packages and applications that serve the needs of the user. Once you have the basic hardware, you can pick and choose other tools and services that are of benefit to your own business requirements. The software can then be kept updated to really allow you to move with the times and take your business to the next level.