GST in Malaysia

GST came into effect in Malaysia on 1 April 2015. This is the first time Malaysia has had such a tax. It is 6%. There have been so many complaints and negative comments for many months before. However 6% is nothing compared to the 20% VAT in UK. Although admittedly much of that tax is used for public services so the people benefit.

As with many new things in Malayia, it will probably be a mess when GST starts, as no one really knows which items are taxable. There were long queues in supermarkets on the days before 1 Apr as people stocked up on items they thought will be taxable.
 The Sun on 30 March listed some items that are taxable and exempt.

Looking at the list, there seems to be little logic -

Coffee powder and sugar are exempt but milk powder and 3 in 1 are  not. 
No mention of 2 in 1 !!!

Canned foods are exempt but canned sardines and tuna are not.

Noodles are exempt but instant noodles aren't.

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Consumers may be shopping till they drop in the final countdown to the Goods and Services Tax (GST) era but how many of them have checked the "zero-rated" and "exempted" supplies list to avoid stocking up on the wrong items.
According to a report in Sin Chew Daily today, many shoppers were seen rushing for infant formula, toddler milk powder, adult diapers, powdered Milo, coffee powder, personal hygiene products, canned food and even rice. But rice, along with infant formula and coffee powder, is not subjected to GST.
"Zero-rated" supplies and goods which are currently subjected to 10% Sales and Service Tax (SST), such as electrical products, will not see a price increase with the implementation of GST. On the contrary, their prices will most likely drop.
Zero-rated supplies include newspaper, white and wholemeal bread, rice, rice vermicelli, noodles, sugar, salt, cooking oil, meat, local and imported fruits, diesel, RON 95 petrol, cooking gas, eggs, fresh vegetables, fish, prawn, coffee powder, infant formula, public transport fares, schoolbus fares, textbooks, reference books, school miscellaneous fees and examination fees.
Goods that will likely see a drop in prices as a result of the replacement of 10% SST with the 6% GST include TV sets, refrigerators, air-conditioners, home theatre systems, gas stoves, cotton bath towers, colouring pencils, toothbrushes, hair-blowers, antiseptic liquid, dinning set, diapers, 850cc vehicles and aerated drinks.
On the other hand, dining out at restaurants is going to cost more with GST. Goods that will see price increases include handphones, computers, laptops and notepads, broadband services, magazines, photocopiers, printers, milk powders (for three-year-olds and above), toys, RON 97 petrol, freight charges, clothings, shoes, bottled drinking water, stationery, toilet paper, canned sardine and tuna, 3-in-1 coffee, Milo, instant noodles, seasoning sauces, lipsticks, watches, ice-cream, cheese, oats and cereals.
Service charges currently being collected by the service industry and restaurateurs will also be subjected to GST.