The Goods and Services Tax (GST) implemented in Malaysia since April 1st has already taken its toll on many Malaysian citizens especially those belonging to the lower and middle income class, while the elite and rich class have felt no effect. It’s the common consensus that the implementation of the GST was really just another clever measure used by the Malaysian government to compensate for its wasteful and extravagant spending practices.
The Rising Cost of Living
The GST combined with inflation in Malaysia has created a burden for the people of Malaysia who struggle to keep up with the rising cost of utilities, groceries and petrol. The hardest hit by the GST are students, senior citizens, retirees and low income to middle income workers. If asked, most Malaysian lower/middle class earners will agree that the GST is an extremely unfair tax (6%) to pay, since many people making up this group will likely need some financial assistance by the government.
How The GST Affects The BR1M Scheme
When the BR1M scheme was first introduced in 2012, it was meant to provide some financial compensation to low-income households and to unmarried individuals earning less than a stipulated monthly amount each who struggled to keep up with the rising cost of living.
The Malaysian government has increased allocated funds for low-income households and individuals as a countermeasure to the newly implemented GST and the rising cost of living. Although 60 percent of Malaysian households qualify for BR1M aid, their assistance would eventually be offset by the GST. Some market experts point out that the GST would actually discourage Malaysia’s economy from expanding, since the majority of its growth stems from domestic consumption. It is no wonder then, that the GST would greatly limit the poor and the struggling middle class’s ability to spend for goods and services beyond their monthly budget.
Shopping Online Can Save On The GST
Although many developed nations have fully embraced e-commerce, it’s still considered to be a new industry in Malaysia. Overall, many Malaysians are used to shopping for what they need through the traditional shopping method where they can see and feel items before they buy them. However, there’s a significant GST price difference that Malaysian consumers can experience by looking for coupon deals in Malaysia online. These deals can significantly minimize the cost incurred from paying the GST every time they shop for groceries, clothes, electronics or household supplies because:
1. It helps them avoid the indiscriminate raising of prices for goods and services by physical businesses since the GST was introduced.
2. They can receive deeper savings for purchasing their goods and services online using promo codes and exclusive online discounts.
One of the most effective ways to find coupon deals in Malaysia is to search for an online Malaysian site that offers up to 70 – 90 percent discounts on goods and services falling under a range of categories. Or type keywords, “Coupon Malaysia”, “Malaysia Deals” “Discount Coupons” to save on your online purchases.