Is it true that those earning below RM3,000 per month who are not liable to pay income tax will now have to pay tax under GST?
This perception is not correct as the scope of charge for both types of
tax is vastly different. The scope of charge for income tax is based
on income received by an individual whilst the imposition of GST is
based on the consumption of goods and services. Presently, those not
liable to income tax still pay sales tax and service tax on goods and
services that they consume. The issue is, most consumers are not aware
that the tax element has been embedded in the price of goods and
services sold by the retailers. As a matter of fact, the imposition of
GST will not make any difference to the tax burden of those earning
below RM3,000 monthly as they would have paid tax on the consumption of
those goods and services.