What benefits do businesses get from GST?
In principle, the GST is not a cost to business as the GST paid on the
business inputs can be claimed as tax credit. As such, it is estimated
that the cost of doing business will decrease by an amount of RM4.3
billion inclusive of a saving of RM1.4 billion by exporters on their
business inputs. The reduction in the business costs will make the
local products and services more competitive in the domestic and
international markets. In addition, the GST is expected to improve tax
compliance and is easier to administer due to its self-policing
feature. With GST, bureaucracy in the government’s delivery system will
be significantly reduced.