With Malaysia growing debt in the short term, it is crucial for the current government to address the government debt issues in order to keep the country's debt in control. While Malaysia still has a few options in order to increase government tax collection, and one of the more effective and efficient tax collection method could be the GST.
Citing on World Bank's lead economist comment on Malaysia option to increase government revenue, the GST is one of the best options for the country. A lot of developed country had adopted GST as it is a proven method to collect tax in a more effective manner.
GST is able to tax the untaxed category that is making a living and staying in Malaysia. That will include foreign workers which is more than 2 million of peoples.
2 million foreign workers with each spending RM 1,500 a month on GST items.
2,000,000 x RM 1,500 x 4% = RM 120,000,000 per month GST collection
1 year
RM 120 million x 12 = RM 1.44 billion
The above is just an example on how GST can help government to get more revenue.
Malaysia had learned a lot from the 1st implementation of GST. One of the major challenges is the GST filling and GST refund.
In order to streamline this process and minimized human error, and reduce the time needed for GST refund, it is suggested that the GST eco system should be connected directly to the Kastam server for live data feed in.
1. This will eradicate malpractice of business owner doing business with 2 set of revenue (a real revenue and a edited revenue for submission)
2. It will also cut off the process of using human to key in GST data into government server every quarterly, which is waste of time and prone to error.
3. It will also enhance GST refund process to the vendors and suppliers.
CUSCAPI - A PIONEER AND PROMINENT PLAYER IN THE F&B INDUSTRY POS SYSTEM
CUSCAPI is an established player in the F&B industry POS system.
With client spanning across South East Asia, the company is set to see more client in the future with the implementation of GST.
At the current price of CUSCAPI, can the share price rose again towards it's recent peak at RM 0.45?
Next on will share with you on my views on CUSCAPI AND GST - WHAT IS THE POTENTIAL BUSINESS MODEL.
