What will be taxed with GST ?
Goods and Services Tax (GST) will be implemented effective April 1, 2015 and the rate is fixed at 6%. GST will be replaced the current Sales tax of 10% and service tax of 6%.
Lets see what is the impact on the following stuff :
- Banking – GST will be payable in respect of the basic charge or fixed fee in connection with commercial banking products and services (online interbank Giro fund transfers and some over-the-counter transactions – including bill payments at Pos Malaysia counters)
- Credit Card -The RM50 charged yearly for credit card, plus the RM25 for supplementary cards will be scrapped, 6% GST will instead apply on credit card annual fees – which can range RM70 annually to over RM1,000, depending on the type of card.
- Books – The standard 6% GST will applies. Reading materials are categorised as zero-rated but this is only limited to some types of books like children’s colouring books, exercise books, text books, dictionaries, religious scriptures and newspapers – See more at:
- Housing – GST will also see basic construction materials such as cement, bricks and sand being taxed the standard 6% GST rate for both residential and commercial properties.
- Residential property – including SoHo (small office/home office) will be exempted. However, commercial properties including SoFo (small office/flexible office) and SoVo (small office/virtual office) would be subject to the 6% GST
- Fuel – RON97 will be subjected to the new 6% GST. RON95, Diesel and LPG (liquefied petroleum gas) will be exempted from GST implementation.
- Electricity – A household will have 6% GST charged to the electricity bill for usage above 300 units.
- New Car – Subject to 6% GST
- Used Car – Currently, used cars are not subjected to SST and is not a GST zero rated item either. Therefore the car industry predicts that used cars will be subjected to an extra 6% tax after the implementation of GST in April.
- Toll & Taxi – Exempt Supply, No GST
- Parking – Subject to 6% GST
- Tuition Fees – 6% as tuition centres are not categorised under educational institutions.
- Insurance – All insurance policies except for life insurance will be charged 6% GST from April.
Please take note that the 6% GST can only be charged by a registered person only. If you suspect that the seller is not registered and charge GST, kindly log a complaint to Jabatan Kastam Diraja Malaysia.