GST ON SALARIED CLASS PEOPLE IN SARAWAK, MALAYSIA

Abstract

Goods and Services Tax (GST) is a value added tax that added to the domestic products and services. It is also well-known as Value Added Tax (VAT) in other countries. In the last few decades, VAT had spread rapidly throughout the world neither in developed or developing economies. The spread of VAT is due to the first adoption by European Union (EU). There later International Monetary Fund (IMF) become a main character in spreading VAT in developing and transitional economies (DTE). The present research work assesses the impact of Goods and Services Tax (GST) towards salaried class employees in Sarawak. The data for the study was collected through a set of questionnaires that distributed to the respondents. The analysis of the result showed the, re is significant effect on the income level and purchasing power towards GST burden, and there was no significant effect on cost of living and economy boosting. A suggestion was made on the GST tax rate, which reduce to 4% in case it is reintroduce by Government as it can increase government source of revenue as well as reduce the GST burden towards the public.