Our Malaysian Prime Minister made and official statement on June 4, 2008 regarding the restructuring of subsidies given by the goverment with regards to the recent oil price hikes.
One of the changes were the increase of the goverment sales tax (GST) threshhold for eateries located outside the hotels. According to the press release, this is to ensure that the Malaysian people do not feel burdened with paying the extra 5% of GST. Previously, eateries making a revenue of RM500,000/annum must charge and collect the 5% GST from their customers. Now, the revenue threshold has been increased to RM3,000,000. This was made effective July 1st, 2008.
When we were deciding, whether to temporarily eliminate the GST, we enquired for some information from the Jabatan Kastam (Customs Department). Their response was if we felt that we would not reach the RM3,000,000.00 then it was ok to stop collecting GST. Otherwise, there is no clear guideline indicating if we should stop collecting the GST or continue collecting GST. Anyhow, we decided to stop charging the GST to our consumers effective July 16, 2008 until we hit the new threshold of RM3,000,000.
So last time, one scoop of Vedablu Ice Cream would cost RM5.88 after 5% GST. Now one scoop will cost RM5.60. Saving the customers RM0.28 cents or with the rounding RM0.30.
So tips to consumers out there. As a consumer, especially when you eat out alot, check on your receipts. Just imagine if you spend RM300/mth on eating out a month, not paying the GST's would mean savings of RM15.00! Can buy additional 5.5 Liters of petrol for the month. Also as a consumer, if you doubt that any eatery you go to is making RM250,000 per month or RM3,000,000 per year. It is always your right to enquire. Because as long as they collect GST, they would have to pay this to the Jabatan Kastam at the end of the month.
One of the changes were the increase of the goverment sales tax (GST) threshhold for eateries located outside the hotels. According to the press release, this is to ensure that the Malaysian people do not feel burdened with paying the extra 5% of GST. Previously, eateries making a revenue of RM500,000/annum must charge and collect the 5% GST from their customers. Now, the revenue threshold has been increased to RM3,000,000. This was made effective July 1st, 2008.
When we were deciding, whether to temporarily eliminate the GST, we enquired for some information from the Jabatan Kastam (Customs Department). Their response was if we felt that we would not reach the RM3,000,000.00 then it was ok to stop collecting GST. Otherwise, there is no clear guideline indicating if we should stop collecting the GST or continue collecting GST. Anyhow, we decided to stop charging the GST to our consumers effective July 16, 2008 until we hit the new threshold of RM3,000,000.
So last time, one scoop of Vedablu Ice Cream would cost RM5.88 after 5% GST. Now one scoop will cost RM5.60. Saving the customers RM0.28 cents or with the rounding RM0.30.
So tips to consumers out there. As a consumer, especially when you eat out alot, check on your receipts. Just imagine if you spend RM300/mth on eating out a month, not paying the GST's would mean savings of RM15.00! Can buy additional 5.5 Liters of petrol for the month. Also as a consumer, if you doubt that any eatery you go to is making RM250,000 per month or RM3,000,000 per year. It is always your right to enquire. Because as long as they collect GST, they would have to pay this to the Jabatan Kastam at the end of the month.
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