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Goods and Services Tax (GST) is a consumption tax imposed on the sale of
goods and services. In some countries it is also called Value Added Tax (VAT). It
is a new tax instrument introduced by the Malaysian government soon, estimated
in 2012 would be the soonest year of implementation (Customs Department,
2010). The introduction of GST in Malaysia has called many arguments from
various parties including academics, professionals and the nation (would become
the taxpayers) on how GST affect goods prices-increase or decrease. The onus
of GST is to replace the current Sales Tax and Service Tax in line with the
government policy of conforming policies of AFTA.
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