Monday, January 10, 2011


It's like a silent fart, 6% service tax is here. It is inauspicious yet deadly. An increase of 1% from 5% to 6% means, if one family spend RM100 a week at restaurant, the government makes RM1 extra. 10 000 families will pay RM10 000/week to the government in additional to the existing RM50 000 week. It means the government will have additional of RM520 000 in YEAR 2010 from the rakyat. The reality is, we go to restaurant more frequent than that, that are more than 10 000 families in Malaysia and restaurants are not the only place service tax is imposed. Details on the tax scheme is available here:

Yes, there are some good news. Handphone no more tax…YAY… err wait, how often do we buy phone? People with household income less than RM3000 may buy 1st house and borrow 100% loan. 100% loan means we pay more interest to the bank. In the long run, we are poorer. At the same time, we pay more for everything thing that we eat or use every day because service tax has increased. Brilliant!

I was damn shocked when recently I had to pay 6% service tax. All the while I thought the government dare not impose since many gruesome voices protesting this idea but since it's already reality, there's nothing I reckon we can do. All in all, at the whole big picture this is what happened in Malaysia: Despite the increasing inflation that is burdening the people, the government says "reduce tariff on stuff they buy once in awhile, only if they can afford hahahahahar….ahem….increase the tax on everything else". "And impose immediately!".


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