[ 23-10-2014 ]
GST May Not Raise Inflation Rate - Tax Consultant
KUALA LUMPUR, Oct 20 (Bernama) -- There is a likelihood that the implementation of the Goods and Services Tax (GST) will not likely raise the inflation rate, given the long zero-rate and exempt list, a tax consultant said.
Deloitte Touche Tohmatsu Tax Services Sdn Bhd Indirect Tax Leader Robert Tsang said as the expanded zero-rate and exempt list would enable consumers and businesses to have plenty of choices, they would have to be more prudent in their spending.
"There is no certainty that the GST will cause prices to rise but we will have to see how businesses response to the tax regime.
"It's incumbent upon consumers and businesses to be on the lookout when they buy products and services subjected to the GST and manage them well," he told reporters on the sidelines of the Deloitte TaxMax Seminar here today.
He said the Anti-Profiteering Act would also help control prices and ensure that businesses would not raise prices at their whim and fancy after the implementation of the GST.
Deloitte Tax Services Sdn Bhd Tax Director Bruce Hamilton said consumers could capitalise on social media to take unscrupulous businesses to task by spreading information on their unethical behaviour.
"It will paint a negative picture on particular businesses, so they'll learn very quickly not to go down the profiteering road.
"It is now easier to get information to the public than it was 10 or 15 years ago. This is a significant issue businesses need to be aware of," he added.
Some 400 participants attended the Deloitte Touche Tohmatsu's annual budget seminar which deliberated on the 2015 Budget affecting consumers and businesses.