According to the government's, there are a lot of advantages and reasons to

implement the GST which is good for the development of the country. Many people is
worrying the implementation of the GST is increasing the burden for citizen, in fact
will not hurt the citizen. This is because the proposed implementation of GST is the
replace the existing sales and service tax which has the higher rate compare to the
GST. There are two types of sales and services tax 10% of tax and 6% of tax which
amounted to 16% overall. Therefore, government is saying that the implementation
of GST would not hurt the people as the GST rate is much lower compare to the
existing sales and services tax. So, just what's talking about by the Prime Minister of
our 5th, GST is to make taxation system more effective, efficient, transparent,
business friendly and capable of generating a more stable revenue. (PM Abdullah
Badawi, 2005). No wonder our GST is capable of generating a more stable source of
revenue to the nation. Next, it also can increase national income after
implementation of GST.
As we know, the GST is a tax that does not burden the people in fact have
increased the country's economy. Geoffrey (2010) said that GST can increase
country revenue and mitigate the heavy reliance on income tax and petroleum tax, in
which income tax contributed 44.4% of government revenue in 2010. Like in
business, the implementation of GST did not burden the businesses even the GST is
imposed at every level of the supply chain. Hence, the cost of production of the
businesses not be affect as the input tax incurred at the previous stage is always be
deducted by the businesses in the next step of supply chain, so it dont matter how
many steps where a particular goods and services go through the supply chain. The
burden of tax payer not increase with the proposed implementation of GST as the
income tax rate is not increasing thus tax burden of citizen will not increase when

income level increase. Other than that, it can make more stable for government
revenue with GST as a consumption tax based, compared to direct income taxes
and minimise the impact of economics cycles, particularly during recessions
(Geoffrey,2010). The main purpose of GST is to diversify sources of national income.
One of the ways to achieve this purpose is to reduce dependence to direct taxes as
corporate tax and individual tax (Geoffrey,2010). These two things deductions can
encourage foreign investors to open business in Malaysia and establish employment
opportunities to the people of Malaysia. Next, about the collections since the
introduction of GST.
. The government has advised that revenue collections have been in the order
of RM50 billion since the introduction of GST, compared with the RM37 billion
collected in 2014, without GST (Alex Malle,2016). GST could provide fairness and
equality as the taxed are levied fairly on the businesses involved such as
wholesaling, manufacturing, service sectors or retailing and provide better
transparency to consumers as they will know exactly whether the goods or services
they consume are subject to tax and the amount they pay for, unlike the present
sales tax. Everyone is pay the tax with the implementation of GST and the tax
burden is spread over, instead of just relying on the income tax derived from the
working population, thus GST could provide fairness and equality to everyone. All
these benefits provided by the implementation of GST could stimulate the economic
growth and increase the competitiveness in the global market.
From Business News,The Star Online after one year of implementing GST,
Malaysian consumers are still holding back on spending . They explains that one
year ago, income performance of the retail industry more increase according first

quarter in 2016. Before GST start, citizens took advantage of the retail offers and
automatically spending rose sharply.