It's all about taxes!

         “WHAT?! Tax rises again?!” This is the line that we often hear nowadays. Taxes such as service tax, RPGT tax and tobacco tax are rising. Although these have increased the government’s income, people’s purchasing power will go down. Nowadays in Pakistan, not only adults, students need to pay taxes for their writing instrument too!

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         However, Malaysia government has lowered the income tax during these years. Although the income tax in Malaysia decreases, the goods and services tax (GST) are increased. People need to pay more when they buy goods and services. Since the income level of Malaysians is still low compared to other countries, their disposable tax is low and they don’t manage to pay such high GST tax.  As a result, the purchasing power will drop.

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          In my opinion, although the government has lowered the income tax, but the purchasing power of people does not raise much since other taxes are rising. Even though the government has given some aids such as BR1M aid, there are still many people in this country are poor and even bankrupt. Even for free gift and drink, Malaysians think that it is just a form of government return their money which they pay to government. Government should process the expansionary fiscal policy to boost the economy.  

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So, how you think about Malaysia tax? Is it reasonable for you? 

By Liew Hui Min 0315658