DEBATE.

Goods and Services Tax (GST) is good for Malaysia.

Good afternoon Madam Chairman, Ladies and Gentlemen. The topic of our debate is “Goods
and Services Tax (GST) is good for Malaysia”. We the affirmative team believe that this
statement is true. The first speaker from the negative team has tried to tell you (OPPOSITE
POINT). This is wrong because (WHY WRONG). She has also said that (If you have another
rebuttal point write that down.). This is wrong because (Again write down a reason why that
point is wrong.).

Our first speaker has already explain about (FIRST POINT) and our second speaker also has
already explain about (SECOND POINT). Today I will be talking to you about Goods and
Services Tax (GST) is good for Malaysia. GST is good to our country because it can reduce
business costs. Under the current system, some business may end up facing cascading tax, which
result in them paying the tax multiple times. This may occur when an input of the company is
already taxed by the government and they are again taxed for their output. However under GST,
the business will be able to claim for the tax of their inputs. As such, cascading tax will not occur
under GST. However it needs to be mentioned that GST covers a wider range of goods and
services compared to the current SST, particularly in the services sector. Whether the overall cost
will actually be lower for business remains to be seen.

Based on GST director Datuk Subromaniam Tholasy says in The Star this is due to the nature of
the GST, which allows businesses to pass cost savings down the supply chain by claiming for
their input costs. Giving an example, he says that based on Customs’ projections, Astro’s prices,
which currently have a 6% service tax, should come down as it would enjoy more cost savings.
“Astro’s input costs which are currently not claimable would become claimable. So the cost of
doing business will come down a little and I expect a slight drop in prices. The extent of savings
would depend on the type of business,” he tells The Star. However, once the GST kicks in, he
points out that any costs related to business would be claimable as input tax and businesses
would be able to save costs this way.

Furthermore, when the GST is introduced, the income tax rate is reduced from 25% to 24%. This
has been announced during an international seminar on GST by the Finance Ministry tax division
undersecretary Datuk Siti Halimah Ismail who said that for businesses, the corporate income tax
rate would be cut from 25% to 24% for the 2016 year of assessment. SMEs will also see their
income tax reduced from 20% to 19% while the co-operative income tax rates will fall from 25%
to 24%. In conclusion, due to this decreasing of tax rate, it can reduce the business cost that will
reduce the cost of goods.