The plan of Malaysian government to impose a 4% Goods & Services Tax (GST) tentatively by 2011 has been a hot topic nowadays.
This mean that majority of the items you buy in Malaysia, other than the very few designated exempted "essential" items such as rice, sugar, cooking oil, flour, etc., will make you pay an additional 4% of the purchase price to the government by then.
You might not feel the pain if the item price is low, for example, the GST of a RM100 item will be imposed at RM4 only.
However, if the item price is high, the impact will be significant.
Most people will buy at least 2 costly items in their lifetime, namely house and car. These are the items that probably affect you the most by GST!
- If you buy a car for RM50,000, the GST will be RM2,000.
- If you buy a house for RM300,000, the GST will be RM12,000.
- And if your house go for renovation that cost RM50,000, there is also GST of RM2,000 to be paid.
If you plan to buy house for yourself or for investment, also better get it done before 2011.
If you plan to get married (which involve quite a lot of costly services and goods), also better get it done before 2011.