GST: Taxable and non-taxable goods

Some people say that the implementation of the GST is premature in Malaysia as we have not achieve high income status yet. I say, the time is now. If we think we are not ready yet, we'll never be ready for it. Not in five years' time and not 10 years later.

It is good for the country and everybody will be contributing to the government's coffers. As it is now, only the working class and those with reportable businesses are paying tax.

The more important question (at lease to me) is how efficient and transparent would the billions of Ringgit collected be spent. Everyone should enjoy the benefit of the government's better financial standing as a result of GST implementation. Not just some selected few.

If you've been asking, the followings are goods and supplies exempted from the GST:-


Zero rated supplies include major essential goods such as foodstuff and utility services.



Essential services are also exempted, meaning you should not experience increase in prices of services rendered after the implementation.


The other big question is how stringent will the enforcement be. Traders will tend to increase selling prices citing GST as reason when in actual fact they remain similar or lower. Spend money on public education, monitoring, and enforcement - prosecuting those violating the law.


Infographic source: Astro Awani

Useful information from the recent SEDA Malaysia Open Day

The SEDA Open Day was organised on October 20, 2013 in Kuala Lumpur and although I am not one of the participants, it appeared to be a great session for licence holders and enthusiasts alike.

I posted an article about the Open Day a couple of weeks ago and felt obliged to post this one here in appreciation to a comment by one of our readers. The reader provided very good tips and information. Among others, they are:

a) What happen after the 21-year agreement between FiAH and TNB?

After the expiry of the 21-year  Renewable Energy Power Purchasing Agreement (REPPA) between FiAH and TNB, a Net-Metering scheme would probably be used. In Net-metering, energy generated from the solar panel can be used by the home owner and any excess electricity not used will be exported to TNB's grid and the amount will be deducted from the owner's energy consumption bill.

b) Issue pertaining to additional bonus rate in the FiT

Additional bonus rate for solar panels used as a building material will be subject to verification by SEDA inspector. Bonus rate can only be given if SEDA is satisfied with the installation.

c) What happen if my solar PV system is not performing, i.e. it is not feeding into TNB's grid?

Although REPPA states that FiAH would feed all electricity generated from the solar PV system, there will be no penalty from TNB in case of non performance. This is applicable only to residential installations, and not non-individual installations.

d) Can I increase the capacity of my solar PV installation?

Existing FiAHs can submit application to SEDA to increase the capacity of their solar systems. Approval by the authority is subject to availability of quota at the time the application is submitted.

e) I saw that there is a projected degression rate in the SEDA website. Will there be changes to the published rates?

Degression rate may change as SEDA sees fit. For 2014 degression rate, SEDA has submitted its proposal to the Ministry of Energy, Green Technology and Water (KETTHA) for approval. A revised rate would be published at its website.

f) Is the income from solar PV installation at home subject to taxation?

Income from solar PV installation at homes are subject to income tax. SEDA informed that the Treasury has rejected its proposal to exempt domestic installations from income tax.

g) There seem to be delays in payment to FiAHs from TNB?

TNB's Dr Ahmad Jaafar assured that TNB will pay licence holders (FiAHs) within 30 days of verified invoice as contained in the REPPA. FiAHs can check TNB e-Services website after mid Nov 2013 to view their Renewable Energy Payment Advice.


Note: SEDA informed that there will be no more quota release for 2013. As such, home owners interested to install grid connected solar PV system at their homes will have to wait for 2014 quota.

Credit to the our commenter, Unknown, for this information.


Abbreviations:
REPPA - Renewable Energy Power Purchase Agreement
FiAH - Feed-in Approval Holder

Mount Kinabalu from different perspectives

The older generation believe that Mt Kinabalu is the heart of this land. By heart, they mean the life of the land - if you take it out, this land will destabalise like a driver-less boat, floating aimlessly into the open sea. Anyway, I'll leave it to the folks to tell the story to the young.

Not too long ago, it was taught to be the highest peak in South East Asia but with the emergence of better technology, the highest peak is now known to be somewhere in Indonesia. With this fact known, you still think that Mt Kinabalu is one of the most spectacular looking mountain around.


Scenic view from Mengkabong Bridge, Tuaran



Pekan Nabalu, few kilometres away from the actual location of Mt Kinabalu



Visitors enjoying the spectacular close range view of the mountain at Pekan Nabalu observation deck



Afternoon view from Kasih Sayang Resort, located above Kokol Hill in Menggatal



Wider view from Mengkabong fisherman village located around 60 km away

Sunrise at Donggongon town of Penampang


I've heard that the views from around Kota Belud area are just as magnificent and some say that the best place to get a glimpse of the dangerous cliff is here in this district.

I hope to make a trip there soon.