Jurnal Ekonomi Malaysia
50 (2) 2016 15 – 30
International Business School
Universiti Teknologi Malaysia
Jalan Sultan Yahya Petra (Jalan Semarak)
54100 Kuala Lumpur, Malaysia
Institut Kajian Dasar Pertanian dan Makanan
Universiti Putra Malaysia
Putra Infoport
43400 Serdang, Selangor, Malaysia
Institut Kajian Dasar Pertanian dan Makanan
Universiti Putra Malaysia
Putra Infoport
43400 Serdang, Selangor, Malaysia
Jabatan Ekonomi
Fakulti Ekonomi dan Pengurusan
Universiti Putra Malaysia
43400 Serdang, Selangor, Malaysia
Pusat Pengajian Ekonomi, Kewangan dan Perbankan
Universiti Utara Malaysia
06010 Sintok, Kedah, Malaysia
Abstract
The implementation of Goods and Services Tax (GST) is often attributed as the main cause of the rising prices of goods and services. The main objective of this study is to estimate the extent of GST implementation impact on the costs of production, which in turn have implication on households’ living costs. To achieve these objectives, the input-output price model is developed with modifications to take into account three different tax categories namely standard-rated supplies, zero-rated supplies and exempt supplies. The study finds that the implementation of the GST tends to benefit the economy. GST has the potential to reduce the prices of goods and services by 7.4% compared to only 2.0% expected price increase. The impact of this 5.4% price reduction not only increases the purchasing power of household but also has the potential to narrow the consumption gap between ethnic groups and income classes. However, the actual benefits to the economy depending on the compliance rates of industries to the GST system.
Keywords
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Bibliography
@article{hassan2016pengangguran,
title={Penganggaran Impak Pelaksanaan CBP ke atas Kos Pengeluaran dan Kos Sara Hidup di Malaysia},
author={Hassan, Asan Ali Golam and Saari, Mohd Yusof and Utit, Chakrin and Hassan, Azman and Harun, Mukaramah},
journal={Jurnal Ekonomi Malaysia},
volume={50},
number={2},
pages={15—30},
}
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