Cypop 7 Essay

CYPOP 7 – Promote creativity and creative learning in young children 1.1 – Analyse the differences between creative learning and creativity Creative learning is about how children are actively involved in their own learning and their ability to make choices and decisions. This can be achieved by providing a creative environment, allowing exploration through play and praising the child’s creative efforts. Creative learning is about helping children develop imaginative thinking through exploration of materials, objects and problem solving skills like ICT. It is also about giving children opportunities to make connections between different areas and to relate to them. Some creative learning activities may be goal orientated like the goal is to make any painting they like, but the child will also be exploring the different colours given to them; to paint like colours can be mixed to make another colour. This activity will also help the child in other areas of learning too. Creative learning is about children using their mind to solve problems. Creativity is about risk taking and making connections, allowing children to explore and express themselves through a variety of media and materials. Like through dance, music, making things and drawing. A child being creative is linked to play and can develop through a child being engaged in their own actions and ideas. Creativity consists of traditional arts and the development of imagination and imaginative play, like role play and small world play. Creativity is about exploring emotions and expressions; also is about enjoying creativity and learning from the process. Creativity links to creative development areas of the learning from the EYFS. 1.2 – Explain current theoretical approaches to creativity and creative learning in early childhood There are many theoretical approaches to creativity and creative learning these are nature verses nurture this could mean that people are born with it or they learn it from life or other people. Some people believe that children will learn from watching other people this is called role modelling. Many may believe that creativity is a progress, this means that creativity will follow a pattern to make it happen, this will also help to build upon skills that will occur. Nature versus nurture is a debate in the area of psychology. In terms of children’s  creativity, some think children are born naturally creative, for example having a gift for music or having a creative personality. This is known as the â€Å"nature† theory. Others believe creativity is something that can be taught. This is known as the â€Å"nurture† theory. The cultural approach means that every child will be creative so many things will affect this. As practitioners you have to give the child the right environment that will help children to explore and be creative with how they want to be. Cognitive theories is when children make relations between different things, this theory look at how the brain puts things together, lots of opportunities need to be provided for the child to develop knowledge in lots of different areas, and so that they can draw on their own views and experiences. Some theorists such as Robert Sternberg and Howard Gardener argue that being able to make new connections and to create a drawing from them is a type of intelligence. The ‘Creative Partnerships’ programme was set up in 2002 by the government in response to the influential report ‘all our futures’. They use the term ‘creative learning’ to try and sum up their education programme. They believe creative partnerships can help free the creativity of everyone involved by engaging them in fresh approaches to learning through partnership. They feel collaborative working has these key characteristics; †¢ Motivation for learning †¢ Bringing the curriculum to life †¢ Greater involvement in decision making †¢ New ways for learners to engage in a subject The Qualifications Curriculum Assessment (QCA: Creativity, Find It and Promote It 2005), promotes creativity as an vital part of all national curriculum subjects and identifies characteristics of creative learning as; †¢ Questioning and challenging conventions and assumptions †¢ Making imaginative connections and associating things that aren’t usually related †¢ Visualizing what might be: imagining seeing things in mind’s eye †¢ Trying alternative and fresh approaches, keeping options open †¢ Reflecting critically on ideas, action and outcomes These characteristics and abilities have shown to lead to a sense of purpose, achievement of strengths, talents and interests, self-respect and a sense of belonging. 1.3 – Critically analyse how creativity and creative learning can support young children’s emotional, social, intellectual, communication and physical development Creativity and creative learning can support children’s development in a number of ways. Emotionally they learn how to manage frustration if something is not going to plan and they feel happy and proud and a sense of achievement when something is completed by them. Socially children can build up self-confidence by working with others or alongside them; to make something to share with everyone and the child also makes new friends. Intellectually children learn about problem solving, numeracy and developing their reading and writing skills. Children’s capability to communicate with peers and adults develops through creative play as well as their overall speech and listening skills. Physically, creativity can help develop fine motor skills by children using materials such as crayons, paints and sticking. Participating in movement activities such as dance or drama (role play) also improves the child’s overall physical development. Like during a cooking activity children are learning many skills through this creative process, they may feel happy and excited about making their own food. They are sociable by working with adults to support them and cooking for their friends or family members. By following instructions either written or verbal and measuring quantities they are developing intellectually. Knowing when to ask for help and starting a conversation around what they are doing and using can help develop their communication skills especially listening and taking direction. Finally all the mixing, chopping, kneading and picking up small cut up pieces, help the child develop physically developing the fine motor skills, hand eye co-ordination and building hand and arm muscles. The EYFS ensures that creativity and critical thinking are developed through play- based learning across the curriculum, and that children learn in an environment encouraging exploration and active and playful learning. It reflects the viewpoint that play offers significant benefits for children’s cognitive, emotional, social and physical development and is central to creativity.

Case Discussion: Learning Curve “B” †Assignment Essay

What do you estimate the buyer should pay per unit for the next 700 pieces assuming the supplier demonstrates a 75% learning curve? What if the learning rate is actually 85%? What do you estimate is the per unit cost of the next 700 pieces? 1.A:$178/unit at a 75% Learning Curve 212/unit at an 85% Learning Curve 2. Under what conditions can we use learning curves to estimate prices? In other words, when does the learning curve apply? 2. A:The Learning Curve is applicable when used for new products or processes that have a high potential for improvement, such as producing a technically complex item for the first time, or when an item has high direct-labor content. 3.Why can we use rough estimates when applying learning curves? 3. A:Assuming a reduction in time will follow a predictable pattern, and because it is predictable, we can develop estimates. 4.Why do manual processes experience greater learning curves than automated processes? 4. A:The worker has the ability to learn and improve through repetitive effort and increased efficiency. 5.Are there factors besides learning that can help reduce costs as volume increases? 5. A:Modifications to the production process; such as introducing new production methods, substituting increased automation for labor, or updating process technology.

Periodic Classification of Elements

Periodic Classification of Elements Classification of Elements according to electron configuration ( type of subshell being filled) *valence electrons –outer electrons of atom which are those involved in chemical bonding ; accounts for similarities in chemical behavior among elemens within each of this groups * Representative elements/ Main Group elements * Group 1A-7A * Incompletely filled s/ p subshells Display a wide range of physical and chemical properties * Most reactive and most predictable with respect to periodic properties * most abundant elements on the earth, in the solar system, and in the universe * Group number equals the number of electrons in the highest / outermost energy level H  Ã‚  Ã‚  1s1| Li  Ã‚  Ã‚  2s1| Na  Ã‚  Ã‚  3s1| * Noble Gases * Group 8A * Completely filled p subshell (exc. He) * Great stability * Except krypton and xenon, elements in noble gases are totally inert chemically * The noble gases are all found in minute quantities in the atmos phere, and are isolated by fractional distillation of liquid air. helium| 1s2| neon| [He]2s22p6| argon| [Ne]3s23p6| * Transition Metals * Group 1B and 3B-8B * Incompletely filled d subshells * Readily produce cations * ductile and malleable, and conduct electricity and heat * exhibit several common oxidation states * Less predictable properties * 2B (Zinc, Mercury etc. )- neither representative elements nor transition metals * Transition metal compounds are  paramagnetic  when they have one or more unpaired  d  electrons. Sc 4s23d1| Ti 4s23d2| V 4s23d3| * Inner Transition Metals Lanthanides/rare earth series- Follow lanthanum Actinides- follow actinium; most of these elements are not found in nature but have been synthesized * Incompletely filled f subshells * Cerium: 1s22s22p63s23p64s23d104p65s24d105p66s24f2 Praseodymium:1s22s22p63s23p64s23d104p65s24d105p66s24f3 Electron Configurations of Cations and Anions Ions derived from Representative Elements Cation- electrons removed Anion- electrons added Isoelectronic – ions or atoms and ions that have the same number of electrons, and hence the same ground state electron configuration Cations derived from transition Metals Prepared By: Monina Te

External Environmental Analysis CS 2 Essay Example | Topics and Well Written Essays - 1000 words

External Environmental Analysis CS 2 - Essay Example ecommended the company management that they should increase their corporate social responsibility activities so that the involvement of the local community increase and so the profit of the company. The strategic management process of a company involves the analysis of the internal environment of the company as well as the external environment. For analyzing the external environment of the company the business analyst need to do the analysis of the current scenario of the market which includes the economic analysis, political scenario analysis as well as the analysis of the contemporary technology. This paper is an attempt to analyze the external environment of the Coca-Cola Company which is a soft drink manufacturer, and the NAICS code is 312111 (NAICS, 2011). For analyzing the external environment the researcher is going to use two frameworks, the porter five forces analysis and the PEST analysis. Using the tool an analyst can identify the forces that driving the competition in the industry (Stahl and Grigsby, 1997, p.145). There are five dimensions of the porter five forces model. The analysis of the company using the porter five forces tool is as follows. Competition in the Industry: The competition among the industry is mainly between Coca-Cola and Pepsi. Only these two companies are present in about 200 countries of the world. Others are the small local or global competitors. Coca-Cola and Pepsi are holding major percentage of share in the beverage industry. So the competition in the industry is medium as per the analysis of the researcher. The threat of the substitute products: The threat of the substitute products is medium. Fashionable drinks like red bull and Belgian beer are the competitors and the promotional strategy of these companies are aggressive. There are also some low pricing brands so the switching cost is lower. But due to the brand image of Coca-Cola the threat is low. Bargaining power of the customers: The bargaining power of the

Summary of an article , Standing alone in mecca, by asra q.nomani Essay

Summary of an article , Standing alone in mecca, by asra q.nomani - Essay Example The sense of emancipation and the exploring the actual sense of Islam is vigorous. The paper discusses her experiences and highlights the difference between the written facts in the holy book of Islam i.e. Quran and the harsh realityThe name of Asra Q. Nomani bears particular significance within the feminist struggle and emancipation of woman’s right especially in the Muslim world of today. Born in Bombay, India and brought up in West Virginia, America an outright liberal journalist and a former Wall Street Journal reporter, Nomani tries to find out the atrocities attached with the Muslims in the Western world and blames that it is due to unscrupulous activities of some extremists of her own religion that have attached the notion of violence and terrorism with the Muslim religion as a whole and still makes a major section of the Muslim women , a piece of subordination to the male society. In her desperate creation of the book, â€Å"Standing Alone: An American Woman's Struggl e for the Soul of Islam" reveals her bitter experiences about the pilgrimage to Mecca and exhibits her utmost efforts in reclaiming the right of the Muslim women in the 21st Century (Nomani, 2012). ... According to the sharia law of Pakistan, two women were regarded as witness. At this instance she states that, â€Å"Neither relenting nor opposing the edict, I had my grandmother and my aunt serve as one witness† (Nomani, 2005, p. 195).In her locality in America she also experienced the stereotypes of her religion. One of the converts in the newly opened mosque organized private swimming for the Muslim women on Sunday nights in an indoor pool taping the newspapers to the windows. But the puritanical gossipmongers sliced her efforts. There was also an organization of an entertainment with an innocent four person ride at the Valley’s Worlds of Fun but it was protested by the Protestants as â€Å"Rock and Roll Cage† (Nomani, 2005, p.196) as they thought that it would be promoting improper western dance. Thus it can be said that in America her experience of treatment with the Muslim women were quite harsh. Adversities faced in the trip In the initial phase of the tr ip, she receives permission in making the trip but faces criticisms in going to Saudi Arabia as she was an unwed mother. Nomani became pregnant when was in Pakistan and decided in raising the child with her parents in West Virginia. Ultimately she got the sponsor from her father and family members. Even at the pilgrimage in Mecca, Medina and Jerusalem she did not received proper welcome from the people. As for instance, the board president who was an Egyptian American with PhD degree yelled at her stating that, â€Å"Sister, take the back entrance!† (Nomani, 2005, p.197). The tone was not all good and she experienced this same behavior from the men and women in Mecca as well as in Jerusalem. The man didn’t even greeted her with

Pd film Movie Review Example | Topics and Well Written Essays - 500 words

Pd film - Movie Review Example The primary character in this case is Max Klein, one of the survivors after the plane crash. On realizing that the plane is on a crash course and there is minimal chance of survival, he gets comfortable with the idea that his life is going to be ended. In this situation, Max did not want it to be that he was the only one. This is because there were a whole lot of passengers who were scared by the situation at hand. It is at this point that we see the power of thought and the belief system, which a person has, working for them. Max is of the opinion that he is going to die and he has willingly accepted the fact. In this same case, he offers the other passengers a semblance of consolation. The other way through which this event seems to have changed the life of Max is by letting him do away with some of the fears, which he had. In this case, the fear, which is in question, is the fear of flying. This is something, which is exhibited when he declines the tickets, which were offered to him for the purpose of transport to San Francisco. He clearly states that he does not fear flying anymore. What this shows to the normal person is that it is of the essence to let of the fears, which act as barriers to the development of a person. The reason for this is that it may be difficult for the individual in question to make any significant progress in his or her life. This is simply because he or she is tied to the fears, which he or she seems to be having in his or her life. The happenings in the film also point out to the viewers that it is very important to be people who live for the moment and enjoy the pleasures which life has to offer. This is a fact, which was highlighted when Max met up with Alison, his high school sweetheart. Initially, it is realized that he had an allergy for strawberries. However, upon their meeting, Alison notes that max is eating strawberries. She questions this and the answer gives is that Max had gotten past his

Wall-Mart Case Assignment Example | Topics and Well Written Essays - 1250 words

Wall-Mart Case - Assignment Example Nevertheless, this led to deterioration of reputation of the company. Furthermore, it is concluded by Wal-Mart that the sole focus on associates and customers is no longer viewed to be as viable option. The implementation of non-market strategy is observed as the viable choice to change the reputation of the company and address the critics. There are several interests which are opposed to Wal-Mart such as campaigning which is furthermore backed by unions. The organizing for nonmarket actions has been heavily influenced by campaigning carried by the organization on internet. Furthermore, this is supported by more than 160,000 people. The key interests that are aligned to Wal-Mart Company are the joining of activist group ACORN and other communities such as SEIU and UFCW. The primary focus of the group of communities is to form workers Association for better condition for employees working in Wal-Mart. Some of the nonmarket actions taken by activists are by reducing the number of hours of working. There can be drastic alteration on nonmarket environment after the resolution of current issues. The own actions of firm and external forces are viewed to be as primary sources for commencement of nonmarket issues. The Wal-Mart association named ACORN is viewed to be as pivotal institutional arenas which can help to lessen the issues. The role of government institutions is regarded as vital and sense of hope for other critics and unions of Wal-Mart. The government is pivotal for controlling of opportunities and non-market strategies. There are four condition that are regarded are vital for successful nonmarket strategy. The participation of field units, support of top management, effective decision-making process and determination are some primary conditions. The strategy implemented by Wal-Mart is only based on growth and low prices. There are other vital elements that are required to be focused

The Influence of Japonism in Van Gogh's Works Essay

The Influence of Japonism in Van Gogh's Works - Essay Example Van Gogh was an enthusiastic buyer of Japanese prints, most of which he acquired from the shop of a man named Bing, a Paris-based dealer who specialised in Japanese art. Later, in the South of France, Van Gogh wrote his brother Theo (who was in Holland) to describe the reasons for his love for the art of Japan. He told Theo that Japanese art makes us â€Å"happier and more cheerful.† It is an art of great simplicity, for the Japanese artist can find beauty in â€Å"a single blade of grass† and can create pictures rapidly, â€Å"with a few confident strokes.† Van Gogh particularly admired the prints: â€Å"Japanese prints, coloured in flat tones, are admirable†. Many of Van Gogh’s own paintings contain allusions to Japan. For example, Japanese prints are depicted in the background of his portraits of Pà ©re Tanguy and Self-portrait with Bandaged Ear. Some of his paintings are very â€Å"Japanesey† in their subject matter, for example Branches of an Almond Tree in Blossom. But more important was influence which the Japanese prints had on the actual style of Van Gogh’s work. At first sight, his painting Emperor Moth has no obvious connection to the art of Japan, but if we examine it more closely we can see how deeply Van Gogh had absorbed Japanese aesthetic principles. He told Theo that he had encountered â€Å"a rather rare night moth called the ‘death’s head’, its coloration astonishingly distinguished: black, grey, white, shaded, and with glints of carmine or vaguely tending towards olive green†.... What also strikes us about the painting is its bold design and draughtsman-like qualities. The forms are edged with hard outlines, like the forms in a Japanese print. The painting has a decorative and semi-abstract quality, possibly reminding us of Japanese textile patterns, while the wings of the moth could almost make us think of the patterns on a kimono. The earlier letter to Theo had praised the â€Å"flat tones† of Japanese prints, and the painting is basically a flat design, without much perspective depth. The letter to Theo praised the rapid, calligraphic brushwork of Japanese painting, seen here in the rapid delineation of the grasses and the leaves. Van Gogh had also written to Theo about the Japanese love of nature and simplicity, seen here in his own painting of a single moth, set against a background of plants. Hokusai – most famous for his print of The Great Wave at Kanagawa - was a Japanese printmaker whom Van Gogh much admired, and we could compare Van Go gh’s Emperor Moth with prints like Hokusai’s Irises and Meadow Cicada and Hibiscus and Sparrow, which depict details of nature (illustrated in Fahr-Becker 154-155). Hokusai wrote that he wanted to understand â€Å"the nature of birds, animals, insects, fishes – the vital nature of grasses and trees† (Stanley-Baker 192), which reminds us of Van Gogh’s paintings of butterflies, clumps of grass, lilacs and irises, all of which he painted around the same time as his moth picture (McQuillan184). It is important that Hokusai devoted a great deal of attention not just to flowers but also to their stems and their leaves. This can be seen in Van Gogh’s Emperor Moth painting,

History of Europe in the 20th century. Were conservatives responsible Research Paper

History of Europe in the 20th century. Were conservatives responsible for the rise of Hitler - Research Paper Example There is no denying the fact that the life for the ordinary Germans got quite difficult and worrisome after the culmination of this treaty. Germany was pushed to borrow considerably from the United States of America, to compensate the UK and France (Gibbons, 1982, p. 72). The Great Depression in the late 20s made it almost utterly difficult for the Americans to lend more money to Germany. The fall of the imperial Germany gave way to the rise of parliamentary parties interested in running the political affairs in the defeated nation. It goes without saying that a fair number of political parties and mainstream leaders in the war ravaged Germany were affiliated to a conservative frame of mind and political thought. The nation was already suffering from the guilt of defeat and national humiliation. Above it, it was required to pay heavily in terms of compensation. The political parties and groups supporting the infant Weimar Republic were they Democrats, Socialists or Catholics, were st rongly denounced by the Conservative Nationalists. Hence, it was in the background of a nationwide social and political crisis, that the German Conservatives resorted to political machinations, which led to the rise of Hitler. Economic Situation in the Post War Germany In the period 1924-1928, the economic situation in Germany was somewhat stable. However, this stability was deceptive and stood on hollow economic foundations. The German investments and economic recovery in a post war scenario relied heavily on the loans extended by the US. With the crash of the Wall Street in 1929, the Americans were simply left unable to support the German recovery and economic growth. As the impact of the US economic depression was felt universally, so Germans were utterly not in a position to check its fallout on the German society and economy. The industrial production in Germany plummeted threateningly, the wages crashed and the workers were left jobless (Goemans, 2000, p. 173). Such circumstances left the German masses weary, anxious and scared. The Germans resorted to the crisis by opting for a reckless printing of currency, resulting in a devaluation of currency and rampant and unchecked inflation (Braun, 1990, p. 39; Eubank, 2004, p. 9)). Political Situat ion in the Post War Germany Just when the Weimar Republic was in its nascent stages, Germany witnessed the rise of radical political thoughts in the form of communists, throughout the length and breadth of the Republic (Bessel, 1993, p. 57). The communists gained hold in many German towns and villages. The political atmosphere in Berlin was strongly in favor of a USSR style of governance. Still the Weimar Republic accrued immense support in the form of democrats, Catholics and socialists (Mueller, 2000, p. 46). The Weimer Republic managed to restrain the communists with a strong hand. The post war Germany faced a twin pronged problem. Both the communists and hardcore nationalists were in the favor of a radical solution to the German problems and issues (Kolb, 2005, p. 39). It was such a political environment marred by economic

Kant Moral Law Theory Essay Example for Free

Kant Moral Law Theory Essay â€Å"Two things fill the mind with ever new and increasing admiration and awe the oftener and more steadily we reflect on them: the starry heavens above me and the moral law within me.† – Kant (1788), pp, 193, 259 Immanuel Kant introduced and initiated his ‘moral law theory’ in the late 18th century. The doctrine in question sought to establish and constitute a supreme or absolute principle of morality. Kant disputes the existence of an ‘ethical system’, whereby moral obligations are obligations of ‘purpose’ or ‘reason’. The accuracy of actions [i.e. the rightness or wrongness of an individual deed] is determined by its configuration and conformity with regard to ‘moral law’. Evidently, according to Kant, an immoral transaction is invariably contemplated as an illogical or unreasonable occurrence or action. The supreme moral principle is a consistent working criterion that proves to be practically helpful and theoretically enlightening when used by rational agents as a guide for making personal choices (Kant VI). A supreme guiding moral principle must carry with it an absolute necessity and be done out of duty to the moral law in order to be free from corruption. Kant believed in a fair and impartial law. He accredited and affirmed the presence of an objective moral law that we, as humans, were/are able to identify with through the process of reasoning. Kant argued that we are able to recognise and distinguish moral law, without making reference to the possible consequence or outcome. Immanuel Kant declared a differentiation between statements [i.e. posteriori and priori] that he believed to coincide with moral law. A posteriori statement is one that is based on experience of the material world. In opposition, a priori statement requires no such knowledge; it is known independent of the phenomenal world. Furthermore, Kant continued to make additional distinctions with regard to analytic and synthetic statements. An analytic statement, he claims, is one that by its very nature is necessarily true, as the predicate is included within the definition of the subject. Example: – [â€Å"all squares have four sides†]. The previous statement is of an analytic nature, as the predicate, i.e. the square having four sides, is implicit and is part of the definition of the subject – [â€Å"square†]. An analytic statement is necessarily true – true by its own authority, and is purely explicative, as it tells us nothing new about the subject. In contrast, a synthetic statement is one in which the predicate is not included in the definition of the subject, and thus is not necessarily true. A synthetic statement also tells us something new about the subject. Prior to Kant, it was widely accepted that there were only two types of statement: a priori analytic and a posteriori synthetic. Kant accepted these two statements although believed there to be a third: a priori synthetic statement. These are statements that are known independent of experience that may or may not be true. Kant claimed that these priori synthetic principles are inherent within us and therefore subsequently form the basis of all moral decision making. Kant’s theory is based on and is primarily concerned with the aspect of ‘duty’. Kant believed and promoted the notion that to act morally is one’s ‘duty’, and one’s ‘duty’ is to act and proceed in accordance to the principles of moral law. Due to this, Kant’s theory is categorised and distinguished as a ‘deontological argument’. A deontological theory is one that maintains the moral rightness or wrongness of an action and depends on its fundamental qualities, and is independent of the nature of its consequence – â€Å"Duty for duty’s sake†. This perspective can be viewed in contrast to the beliefs and ‘rules’ associated and belonging to teleological arguments, i.e. utilitarianism. Immanuel Kant argued that moral requirements are based on a standard of rationality he dubbed the â€Å"Categorical Imperative. The categorical imperative has derived from the initial belief and notion that humans base their moral judgment on pure reason alone. This view can be viewed in contrast to a ‘morality theory’, which assumed/s that human’s actions are guided by emotions or desires. Example: When deciding what I ought to say to a friend who is distraught. Rationale would dictate that I give sensible advice, whereas my emotions may impulsively tell me to give comfort and sympathy. The categorical imperative declares and differentiates between obligatory and forbidden actions, and places further emphasis on the notion of ‘duty’. This statement can be strengthened through the following quotation – [â€Å"All in imperatives command either hypothetically or categorically†¦ If the action would be good simply as a means to something else, then the imperative is hypothetical; but if the action is represented as a good in itself†¦ then the imperative is categorical.†]. Example: If someone tells me that they will buy me dinner if I give them a lift into town, then this is a conditional action and would fall into the hypothetical imperative category. Conversely, if I think that I should give my friend a lift into town with no other agenda (i.e. she will not buy me dinner because of it), then this is a categorical imperative because it is independent of my interest and could apply to other people as well as myself. There are three principles of the categorical imperative: * Universal law; * Treat humans as ends in themselves; * Act as if you live in a kingdom of ends. 1. The categorical imperative is [â€Å"Do not act on any principle that cannot be universalised†]. In other words, moral laws must be applied in all situations and all rational beings universally, without exception. 2. [â€Å"Act that you treat humanity, both in your own person and in the person of every other human being, never merely as a means, but always at the time as an end.†] – The previous statement declares that we must never treat people as means to an end. You can never use human beings for another purpose, to exploit or enslave them. Humans are rational and the highest point of creation, and so demand unique treatment. 3. The quotation [â€Å"So act as if you were through your maxim a law-making member of a Kingdom of ends†] states Kant’s belief in the fact that humans should behave as though every other individual was an ‘end’. In conclusion, it is arguable that the categorical imperative possesses a sense of authority with regard to what actions are permitted and forbidden under Kant’s moral law theory.

The Goods Service Tax In Malaysia

The Goods Service Tax In Malaysia IS THE INTRODUCTION OF THE GOODS SERVICE TAX (GST) IN MALAYSIA GOOD OR BAD? Chapter 1 1.0 INTRODUCTION. In the new global economy, more companies are operating cross border, and as such are faced with the need to deal effectively with many different taxes, often in many different countries, each with different rates, ruling and application. Coupled with this, the regulatory environment is increasingly challenging. The IMF has been trying to push for all countries to adopt the Goods Service Tax (GST), or also known in certain countries as Value Added Tax (VAT), so as to create a more level playing field amongst trading nations. Direct taxes have in the past been used to camouflage à ¢Ã¢â€š ¬Ã‹Å"protectionism policy of certain countries. High tariff on certain product like motorcar has prevented healthy competition amongst trading nations. The general populations of that country are left without a choice but to consume the local products, as imported products have become more expensive with the high tariff. Often, because of this, the local products tend to be inferior in quality as the re is no real incentive to compete. In the 2005 Budget, the Government of Malaysia announced that GST will be implemented on Jan 1 2007 to replace the current sales and service tax (SST). Following public outcry, on 22 February 2006 it announced a deferment to allow lead time to businesses for potential changes in processes, development of software and personnel training. The first reading of the GST Bill was tabled in December 2009 and the second and third reading is expected in April 2010. The Prime Minister recently announced that the increase in revenue expected from the introduction of GST will be used mainly to finance the hike in Civil Servants salary and to finance other infrastructure works for the benefit of the nation at large. Problem Statement Is GST really needed for Malaysia? If so, how does it affect the general public and the country as a whole? The aim of this paper is to discuss and bring to attention the problems which we might face with the implementation of the GST, or if we are to remain status quo with the SST. Chapter 2 Literature review The Ministry of Finance presented the following information to highlight on GST. It stated that it would be part of the overall tax reform to overcome the inherent weaknesses in the SST and to reduce the reliance on revenue from direct taxes and petroleum. GST is a more efficient and effective tax system as it is self policing and has an in-build cross checking features. It enhances tax compliance and deals with less bureaucracy. It is also a more stable source of revenue compared to income tax and less susceptible to economic downturn due to the consumption nature of the tax. The main types of taxes are direct and indirect taxes. Direct taxes are: Corporate Tax, Personal Income Tax, Real Property Gains Tax and Stamp duty whilst indirect taxes are Tariff (or Customs Duty), Excise Tax, SST (currently practiced in Malaysia) and GST. Contribution from petroleum revenue to total revenue increased from 29.1% (1990) to 40.1% (2008). The current high petroleum revenue is not sustainable as it is a depleting resource therefore and alternative source have to be sought. With the present average birth rate of 2.2, it is expected that by 2030, 12% of the population will be above 60 years old which almost double the current number. The working population paying taxes will therefore reduce, putting a greater burden on a smaller group of people. GST is a broad-based tax that distributes the burden of taxation among a larger section of the population based on consumption. GST preserve the incentive to work and encourages enterprise as it is not a progressive income tax. The tax rate does not increase according to income level; it is flat at the determined rate. It is levied at the production and distribution stages, thereby incorporating a self-policing mechanism that facilitates administration and makes it more difficult to avoid or evade. This further reduces the possibility of revenue loss through understatement of tax evasion. The GST model implemented in Malaysia is not expected to have cascading, or pyramiding, effect as the tax on a particular good depends upon its final value, and not the number of production and distribution channel it passes through. Furthermore, the output tax to be paid will be offset against the input tax, and there is no GST levied over GST. GST is expected to provide a more stable source of revenue as consumption is less affected by economic cycles compared to income tax. It can be an effective tax on the à ¢Ã¢â€š ¬Ã‹Å"shadow economy, as those involved would consume, and thus pay indirect taxes through GST. It is likely that those involved in such activities would buy luxury goods, which would be subjected to GST. The government is cutting its operating expenditure for 2010 by 13%. This shows it is aware of the growing deficit that has widened due to the stimulus package. Recently, Fitch rating agency has cut the rating of the ringgit, which may cause imported inflation if it depreciates, and the International Monetary Fund commented that the GST needs to be implemented urgently. Malaysias budget 2010 reports on GST; is that, it is currently at the final stage of completing the study on the implementation, where analysts are measuring the social impact of its presence in Malaysia. The Malaysian government said that it could be possible for them to implement this in the near future. Looking at Malaysia in a broader scale, GST will not only affect big businesses, but small and medium enterprises (SME) as well. Although there were nimble of past information saying that a food outlet can only charge GST if its annual turnover is above RM3 million (3,000,000 Ringgit Malaysia), the GST compliance requirements and thresholds has not been officially announced. If we were to take into account GSTs implementation into goods and services, we have to assume that it will happen to all stages of the supply chain; which means from the purchase of raw materials or start-up goods all the way to end-user (consumer ready) products available for sale. Ultimately in a product, GSTs charged to every level are passed on to the next person and ultimately, the consumer. A Tax Review Panel was formed in middle of 2005, and it has come out with a Discussion Paper intended for businesses to understand the basic administrative requirements and procedures when GST is implemented so that they know the impact of GST. Secondly, the Tax Review Panel invites the business community and other relevant organizations and associations to review the proposal in that paper. Thirdly, by having a public consultation, it provides an appropriate forum for both the public and private institutions to exchange views with members of the Tax Review Panel so as to understand the rationale behind the proposals initiated. The GST was supposed to be implemented in Malaysia in the year 2007; however the government has to defer the move due to critical reviews by certain quarters. After losing four States to the opposition, it has to tread on a careful path in order not to lose more public support. It cannot afford to make any more major mistake in the wake of its dismal performance in the last General Election. GST is generally known as a tax system which results in regressivity (i.e. people with less pay a greater share of their resources than those with more), in contrast with the ideal aim of progressivity which is generally sought when implementing a tax. It is sometimes argued that a GST system does not work in a poor region such as Africa, where most countries have heavy external debt burdens, malnutrition, civil wars and lack of food and medicines which often result in inhuman living conditions. Nevertheless, with the support of the IMF, VAT/GST systems were designed in many African countries to combat or at least alleviate the adverse effect of VAT/GST regressivity by having a list of exemptions and zero-ratings which apply (generally speaking) to basic foodstuffs and other basic necessities. GST is not always simple to administer, contrary to what the advocates of GST would want countries to believe during the transformation stage. Unless a proper GST administration, supported by modern technology and electronic communication systems can be implemented, GST administration will inevitably be costly for both the Revenue Authorities and the business sector. The output/input mechanism of the GST system, coupled with GST refunds, may provide the ideal opportunity for fraud where corrupt officials and unscrupulous businesses exploit weaknesses in the system. This again results in a defensive attitude from the Revenue Authorities, resulting in bad communication, cash flow and other GST cost. In 1992, a Free Trade Agreement (FTA) was signed which reduced import tariffs between ASEAN member countries. In the first three years of the FTA, exports amongst the ASEAN countries grew from US$43 billion to US$80 billion. In 1997, the leaders of ASEAN adopted the vision to build a stable, prosperous and highly competitive economic region, in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities. The plan is to remove all tariffs for the six more developed countries by 2010 and for all countries by 2015. The summit also progressed the efforts to integrate ASEAN with the much larger economies of Asia- Pacific, specifically China, Japan, South Korea, India, Australia, and New Zealand. China signed a pact to introduce the worlds largest free trade zone by 2010, covering almost two billion people. Japan signed a similar agreement to take effect by 2012. India agreed to join in by 2011. Australia and New Zealand have agreed to talks starting next year to free up trade within a decade. The master plan is to have a free trade zone that can compete with the US and EU. In South East Asia, Malaysia remains one of the few countries yet to adopt the GST system, which would indirectly be in the way, if we want to be part of this master plan. In Malaysia, it was announced that essential goods and services will not be subjected to GST, but fears that GST will spark a chain reaction that will increase the prices of most non-controlled items should not be dismissed. We have seen numerous examples of when there is an increase in a certain commodity; it sparks a price rise in most goods and services. For example, when the petrol price increased to RM2.70, prices of most goods, foods and services were hiked. But after the petrol price dropped, there has not been a substantial correction in the prices of goods, food and services. The relevant ministries are powerless to mitigate the situation and curb the necessary inflation. A recent example is on the removal of the subsidy on white bread resulting in price increase of one loaf of bread by 20 to 30 cents. The Deputy Domestic Trade, Cooperative Consumer Affairs Minister can only comment that the price adjustment was not necessary, urge traders to practice corporate social responsibility and call on the consumers to execute their power in hand. All these statements will not effectively curb excessive profiteering and traders taking opportunity to increase the price of goods and service. The public would want to know how the government intends to avoid the similar predicament What is GST and how does it work? GST is a consumption tax charged on a wide range of domestic international products, goods and services. Its a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. The proposed implementation of GST will replace the current Malaysian service tax and sales tax. Broadly, GST works by offsetting GST paid on purchases (input tax) against GST due on sales or supplies made (output tax). This is referred to as the credit offset mechanism. The multi tier stages of tax helps to ensure that GST paid by businesses for purchases does not end up being a permanent cost. However, the consumer ultimately bears the burden of the tax. Conceptually, GST is imposed on the value added to goods or services by each separate processor in the production and distribution chain. This can be seen in the simple illustration below. GST to Government RM 4 + RM2 = RM6 (i.e. 4% x RM 100) i.e.4% x RM 150 = RM6 Output tax i.e. 4%x150 Less RM4 Input tax RM2 Net 4% is the assumed standard rate of GST. It is assumed that the entire output is taxable and all input taxes are creditable. FINAL CONSUMER Cost to consumer = RM 156 SUPPLIER Selling price = RM100 GST(4%) = RM 4 Total = RM 104 MANUFACTURER Cost = RM 100 Value added = RM 50 Total = RM 150 GST (4%) = RM 6 Total = RM 156 2.1 SOME CONCERN ABOUT THE INTRODUCTION OF GST. There were some concerns that Malaysians could suffer even more with the introduction of the Goods and Services Tax (GST). GST-driven inflation would be a calamity that the struggling lower-income group could do without. The GST Bill was tabled in Parliament at the end of the Budget sitting that ended on 17 December 2009. At its first reading, the bill was just mentioned, but there was no explanation of the bill or any debate. The second reading is when the bill is open for debate and proposed amendments. This may come as early as March 2010 for the GST Bill. Once approved, the new tax can be implemented as early as 2011. The table below lists the governments tax revenue for 2008 which contributed RM112.9 billion or 70 per cent of total government revenue. Government Tax Revenue in 2008 Personal Income Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 15.0 bil Company Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 37.7 bil Petroleum Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 24.2 bil Export and import duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM  Ãƒâ€šÃ‚   5.4 bil Excise duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 10.7 bil Sales and Services Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 11.7 bil As shown in the table, the biggest source of tax revenue is company tax, which at 26 per cent of declared profits, currently brings in RM37.7 billion into government coffers. Petroleum tax makes up the second biggest tax item while the tax levied on the 1.5 million individuals who are now currently paying personal income taxes in Malaysia makes up the third biggest. All these taxes are deemed progressive for they tax the richest individuals and the companies that are making profits. Progressive taxes do not burden the poorer sectors of society. Progressive taxes tend to equal out income differences between the rich and the poor in society. It was argued that regressive tax regimes, on the other hand, burden the poor. Sales taxes are generally regressive as they tax consumption and not income. But sales tax in Malaysia has different rates for different types of goods and the government can make them less regressive by levying sales taxes exclusively on good that are consumed by the richer sectors of society such as expensive cars, big houses, overseas travel, expensive restaurants and other luxury items. The Goods and Services Tax, however, is perceived to be even more regressive for it is levied at a flat rate on a very wide range of products including many items that the poorer people need to buy. It might lead to a rise in prices and would definitely hit the poorest the hardest.   As in most countries with the GST in place, a reduction of corporate tax and personal tax will follow suit. This then, is seen as the real reason that the GST is being brought in à ¢Ã¢â€š ¬Ã¢â‚¬Å" to make Malaysia more business friendlyà ¢Ã¢â€š ¬? by cutting corporate tax (which has already been reduced markedly from the 40 per cent level in 1988 to its current 26 per cent). 2.2 LACK OF INFORMATION AND CONFUSION ON GST. The piecemeal release of information is creating great concern among the people and in the business sector. For example; Will the authorities furnish an extensive list of item that will be charged GST, and what will be exempted? If a product, like rice or chicken is exempted, does the exemption apply across the board regardless of the form of the product? For example, is cooked rice or cut, frozen or marinated chicken also exempted? What is the difference between exempt and zero-rated GST? Will there be any reduction in personal and corporate tax? What changes will be made to the sales and service tax? There is a perception that as GST is a multistage tax, it would result in higher effective tax rate than 4%. As GST is very technical, most people are unaware how it will impact them. When will the GST rate be reviewed? Recent media statement on its impact did not improve opinion on the introduction of GST. It is reported that under the sales and services tax system, the burden on the poor is 2.38%, but under the GST it will be 2.17%. For the higher income group, the tax burden will be reduced from 13% to 2.74%, according to the Finance Ministry. The overall savings for households will be between RM14.52 and RM346.92 yearly. This clearly contradicts other statement from politicians, and the public perception, that the GST will be inflationary. But as no further details are provided on how the savings are arrived at, public sentiment remains negative on GST. CHAPTER 3 EXPECTED IMPACT OF GST 3.1 Impact on the people in the street. The public is generally concerned that the introduction of GST will hit their wallets directly. In an initial assessment, as the GST is expected to be lower than service tax, the bill for a restaurant meal will be 1% lower as the service tax rate is 5% and GST is 4%. For other services liable to service tax, a GST rate lower than service tax should result in a slight decrease in charges if the cost of the other components in providing the service remain the same. On goods that attract sales tax, the current rate seems higher than the proposed GST, hence there might be a reduction if there is no further adjustment. Current rates are as follows; à ¢Ã¢â€š ¬Ã‚ ¢ Fruits, certain foodstuff and building materials (5%) à ¢Ã¢â€š ¬Ã‚ ¢ General goods, including motor vehicle (10%) à ¢Ã¢â€š ¬Ã‚ ¢ Liquor and alcoholic drinks (20%) à ¢Ã¢â€š ¬Ã‚ ¢ Cigarette and cheroots (25%) For hawkers; even though they do not have a turnover of RM500,000 yearly, so are not required collect GST, the material procured, for example, noodles, fish balls, processed meat, chicken, equipments for the stall may be subjected to GST, resulting in price hike. But without detailed knowledge or mapping, or even information on the duties charged, the people are uncertain whether the prices of goods and services will remain stagnant, increase or decrease. 3.2 IMPACT ON BUSINESSES. The implementation of GST is expected to impact business in the following manner: Compliance costs are expected to be incurred as there is requirement to track the input tax and output tax to determine refund or tax to be submitted. Even though some Malaysian companies are already paying sales tax or service tax, there was no input tax to be monitored and accounted for to offset against output tax. Business process and procurement need to be mapped out, especially with respect to suppliers and promotional items. For example, a new car attract GST, but items provided for free during promotion like sports rims or a GPS system à ¢Ã¢â€š ¬Ã¢â‚¬Å" may not be eligible for an input tax claim. Likewise the corporate souvenirs and hampers given out by businesses may not be eligible. The procurement department should start detailing the sales tax or the existing tax paid for their items used a raw material. As the GST is expected to be lower than most current indirect tax, there should be some potential cost savings. This is also to avoid being overcharged by supplier that intends to add the GST over the existing price of its supplies after sales tax, there should be some potential cost saving. Human resource factor: New staff may need to be employed to ensure a business is compliant and conversant with the GST requirement. As most staff have not been exposed to GST, training needs to be conducted. Accounting system and account payable: The business would require an appropriate accounting system to keep track of the GST amounts. Most systems could be upgraded, and it is important to notify software vendors to test run the data to avoid any potential complication. Cash flow management: Businesses should be aware that output GST may have to be settled before settlement of sales invoices by customer. Meanwhile, payables on which input tax has been claimed but remains unpaid after six months have to be accounted as output tax and are to be reclaimed as input tax only after payment is made. Businesses are concerned about the timeliness of the refund process as delays would results in a higher working capital cost. In addition, businesses that have thin margins are worried about the speed of the refund for input tax, especially if the business is mainly exported-oriented and procure its raw material locally. 3.3 OTHER IMPACTS: The expected impact on corporate and income taxes are as published in the news recently. Deputy Finance Minister Chor Chee Heung quoted that Malaysia will see a gradual reduction in its corporate and income tax rates once the proposed Goods and Services Tax (GST) is in place by mid-2011. He does not think that there was a timeline for achieving this reduction in corporate and income taxes, as this is a long-term objective of the government. Once the GST come into play, it will be a broad based tax and the trend is, once GST is implemented, corporate and income taxes will gradually be reduced. Chor also disclosed that businesses related to services such as those in the food and transportation sectors, would be exempted from the proposed GST. He gave assurance that the cost of living and lifestyle of the people would not increase or be affected with the implementation of a GST. He also added that the implementation of GST would not cause inflation. Once the GST is in, the service tax and sales tax (now imposed) would be abolished. Both taxes are quite high at 10 per cent and five per cent respectively. The GST at four per cent is considered very low. Meanwhile, the Finance Ministrys Tax Review Panel Chairman, Ms. Kamariah Hussain, said there would be revenue gains of about 1.0 Billion Ringgit for the government with the GST implementation. She explained that the introduction of the GST was part of an overall tax reform in the country. With the GST, the government would have a better mix of revenue, and not be too dependent on income tax and petroleum income. Second Finance Minister, Ahmad Husni Hanadzlah had indicated that while the GST would replace the existing sales and services taxes, it would not put pressure on prices and to ease the burden of consumers, staple foods such as rice, sugar, cooking oil and flour would be exempted from it. 3.3.1 IMPACT OF GST ON SMALL MEDIUM ENTERPRISE (SME). SMEs form the backbone of the business activities of a nation. Other than encouraging the growth of new industries such as tourism and biotechnology-based industries, the Government (2004 Budget Proposals) too has singled out SMEs to spearhead domestic growth. However, there is a group of à ¢Ã¢â€š ¬Ã‹Å"unhappy people representing non-governmental organizations (NGOs) and the public who have expressed their non-approval for the introduction of the proposed GST. Their main argument is that GST favours the rich and burdens the poor at large. Their contention is that it will burden the people and contribute to the widening gap between the rich and the poor, not to mention the rise in the inflation rateà ¢Ã¢â€š ¬?. However, tax practitioner, Beh Tok Koay is of the opinion that perhaps this small group lacks an understanding of the whole system of GST. It is supposed to be broadbased and will replace the service and sales tax system, and this in turn will help to reduce income tax ratesà ¢Ã¢â€š ¬?. There could be two GST rates: a lower rate for SMEs and a higher rate for large enterprises. Imposing two GST rates is, however, difficult to administer as they provide ample room for tax avoidance and increase compliance cost. Lowering the compliance cost of GST would ease the burden of SMEs. If there is convincing data to show that the compliance cost of SMEs are lower if the accounts are computerized, then the Government could provide software packages to the licensees to enable them to correctly compute GST. Free training and seminars including visits should be extended to SMEs to enable them to have a better understanding of the compliance requirements. One other option is to exempt small busine sses from GST altogether but such a decision too has its drawbacks. The Government has to analyze the revenue gain as compared to the compliance cost before making a decision to determine the threshold limit. With the two-year window period before GST is in force, all of us have a role to play in contributing towards the development of a better broad-based consumption tax system which ultimately would help reduce the rates of income tax. No doubt, everyone especially the SMEs will eagerly await the final introduction of the GST system and the extent of the expected income tax rate cuts. The business community, NGO and charity organization are concerned about the ability of the authorities to implement GST smoothly. Australia, for example, had to bring in foreign experts to help in rollout of GST. It would undermine investor confidence if the GST is not implemented in a structured manner with minimal hiccup. Burdening the poor and those economically vulnerable: Some 32% of the household in Malaysia have an income under RM2,000 per month. The introduction of GST without the necessary revamp of subsidies will result in a heavier financial burden on poor and low-income families. Families with an income below RM2,000 a month do not have to pay personal income tax. With GST, things that are not basic necessities toys, processed food, can food, packet drinks, and so on, could increase existing inflationary pressures. The ongoing restructuring of the subsidy will also create the tension, discomfort and dissatisfaction as people eligible for subsidy could unintentionally be left out as the government establishes and tries to refine its method of distribution. CHAPTER 4 4.0 CONCLUSION GST is unavoidable. It will just be a matter of time when it will be implemented. It may not be a perfect system, but has worked well as a revenue base for other countries. Malaysias problem may lie more in public education, implementation and enforcement. To move forward, Malaysia has to conform to the free trade vision of ASEAN and cannot lag behind the other countries. As of today, apart from Malaysia, only Myanmar and Brunei has yet to implement the GST. GST modernises the tax system by addressing tax evasion committed by free riders who want every benefit but refuse to pay for it, or rather have others to pay for them. GST will certainly be a good platform to increase the Governments revenue. Concerns of it being regressive can be overcome by careful and prudent classifications of zero rated supplies and exempt supplies for essential items as against standard supplies for non essential and luxury items. One good point of starting late is the ability to learn from the mistakes of others. The government has to be fully transparent in the implementation of the proposed GST. In this borderless world, news and knowledge cannot be curbed. The masses are getting more intelligent and informed. It will not be prudent for the government of the day not to move forward towards a more modern tax system. Rather than blind opposition, critics should provide examples and lessons learnt from the weaknesses of other nations in the implementation of GST or VAT. However, based from past experience, the skeptism voiced is understandable. We have heard of past Auditor General Reports on the wastage and the leakage of public funds into the pockets of the well connected; of RM 25 screw drivers being bought through tender at a price of RM200; commissions running into millions of ringgit for the purchase of Sukhov jets and submarines; and billions swallowed in the PKFZ scandal. The sums involved are astronomical. Then we have newly built hospitals that cannot be used, court room complexes with leaked ceilings and stadium roofs that collapsed in the absence of even a small earthquake. So, whether the GST will finally proved to be good or bad for the country will remain a question mark until its actual implementation. The actual salary increase as promised by the government might not be the expected pot of gold at the end of the rainbow if the GST is not properly implemented. The Goods Service Tax In Malaysia The Goods Service Tax In Malaysia IS THE INTRODUCTION OF THE GOODS SERVICE TAX (GST) IN MALAYSIA GOOD OR BAD? Chapter 1 1.0 INTRODUCTION. In the new global economy, more companies are operating cross border, and as such are faced with the need to deal effectively with many different taxes, often in many different countries, each with different rates, ruling and application. Coupled with this, the regulatory environment is increasingly challenging. The IMF has been trying to push for all countries to adopt the Goods Service Tax (GST), or also known in certain countries as Value Added Tax (VAT), so as to create a more level playing field amongst trading nations. Direct taxes have in the past been used to camouflage à ¢Ã¢â€š ¬Ã‹Å"protectionism policy of certain countries. High tariff on certain product like motorcar has prevented healthy competition amongst trading nations. The general populations of that country are left without a choice but to consume the local products, as imported products have become more expensive with the high tariff. Often, because of this, the local products tend to be inferior in quality as the re is no real incentive to compete. In the 2005 Budget, the Government of Malaysia announced that GST will be implemented on Jan 1 2007 to replace the current sales and service tax (SST). Following public outcry, on 22 February 2006 it announced a deferment to allow lead time to businesses for potential changes in processes, development of software and personnel training. The first reading of the GST Bill was tabled in December 2009 and the second and third reading is expected in April 2010. The Prime Minister recently announced that the increase in revenue expected from the introduction of GST will be used mainly to finance the hike in Civil Servants salary and to finance other infrastructure works for the benefit of the nation at large. Problem Statement Is GST really needed for Malaysia? If so, how does it affect the general public and the country as a whole? The aim of this paper is to discuss and bring to attention the problems which we might face with the implementation of the GST, or if we are to remain status quo with the SST. Chapter 2 Literature review The Ministry of Finance presented the following information to highlight on GST. It stated that it would be part of the overall tax reform to overcome the inherent weaknesses in the SST and to reduce the reliance on revenue from direct taxes and petroleum. GST is a more efficient and effective tax system as it is self policing and has an in-build cross checking features. It enhances tax compliance and deals with less bureaucracy. It is also a more stable source of revenue compared to income tax and less susceptible to economic downturn due to the consumption nature of the tax. The main types of taxes are direct and indirect taxes. Direct taxes are: Corporate Tax, Personal Income Tax, Real Property Gains Tax and Stamp duty whilst indirect taxes are Tariff (or Customs Duty), Excise Tax, SST (currently practiced in Malaysia) and GST. Contribution from petroleum revenue to total revenue increased from 29.1% (1990) to 40.1% (2008). The current high petroleum revenue is not sustainable as it is a depleting resource therefore and alternative source have to be sought. With the present average birth rate of 2.2, it is expected that by 2030, 12% of the population will be above 60 years old which almost double the current number. The working population paying taxes will therefore reduce, putting a greater burden on a smaller group of people. GST is a broad-based tax that distributes the burden of taxation among a larger section of the population based on consumption. GST preserve the incentive to work and encourages enterprise as it is not a progressive income tax. The tax rate does not increase according to income level; it is flat at the determined rate. It is levied at the production and distribution stages, thereby incorporating a self-policing mechanism that facilitates administration and makes it more difficult to avoid or evade. This further reduces the possibility of revenue loss through understatement of tax evasion. The GST model implemented in Malaysia is not expected to have cascading, or pyramiding, effect as the tax on a particular good depends upon its final value, and not the number of production and distribution channel it passes through. Furthermore, the output tax to be paid will be offset against the input tax, and there is no GST levied over GST. GST is expected to provide a more stable source of revenue as consumption is less affected by economic cycles compared to income tax. It can be an effective tax on the à ¢Ã¢â€š ¬Ã‹Å"shadow economy, as those involved would consume, and thus pay indirect taxes through GST. It is likely that those involved in such activities would buy luxury goods, which would be subjected to GST. The government is cutting its operating expenditure for 2010 by 13%. This shows it is aware of the growing deficit that has widened due to the stimulus package. Recently, Fitch rating agency has cut the rating of the ringgit, which may cause imported inflation if it depreciates, and the International Monetary Fund commented that the GST needs to be implemented urgently. Malaysias budget 2010 reports on GST; is that, it is currently at the final stage of completing the study on the implementation, where analysts are measuring the social impact of its presence in Malaysia. The Malaysian government said that it could be possible for them to implement this in the near future. Looking at Malaysia in a broader scale, GST will not only affect big businesses, but small and medium enterprises (SME) as well. Although there were nimble of past information saying that a food outlet can only charge GST if its annual turnover is above RM3 million (3,000,000 Ringgit Malaysia), the GST compliance requirements and thresholds has not been officially announced. If we were to take into account GSTs implementation into goods and services, we have to assume that it will happen to all stages of the supply chain; which means from the purchase of raw materials or start-up goods all the way to end-user (consumer ready) products available for sale. Ultimately in a product, GSTs charged to every level are passed on to the next person and ultimately, the consumer. A Tax Review Panel was formed in middle of 2005, and it has come out with a Discussion Paper intended for businesses to understand the basic administrative requirements and procedures when GST is implemented so that they know the impact of GST. Secondly, the Tax Review Panel invites the business community and other relevant organizations and associations to review the proposal in that paper. Thirdly, by having a public consultation, it provides an appropriate forum for both the public and private institutions to exchange views with members of the Tax Review Panel so as to understand the rationale behind the proposals initiated. The GST was supposed to be implemented in Malaysia in the year 2007; however the government has to defer the move due to critical reviews by certain quarters. After losing four States to the opposition, it has to tread on a careful path in order not to lose more public support. It cannot afford to make any more major mistake in the wake of its dismal performance in the last General Election. GST is generally known as a tax system which results in regressivity (i.e. people with less pay a greater share of their resources than those with more), in contrast with the ideal aim of progressivity which is generally sought when implementing a tax. It is sometimes argued that a GST system does not work in a poor region such as Africa, where most countries have heavy external debt burdens, malnutrition, civil wars and lack of food and medicines which often result in inhuman living conditions. Nevertheless, with the support of the IMF, VAT/GST systems were designed in many African countries to combat or at least alleviate the adverse effect of VAT/GST regressivity by having a list of exemptions and zero-ratings which apply (generally speaking) to basic foodstuffs and other basic necessities. GST is not always simple to administer, contrary to what the advocates of GST would want countries to believe during the transformation stage. Unless a proper GST administration, supported by modern technology and electronic communication systems can be implemented, GST administration will inevitably be costly for both the Revenue Authorities and the business sector. The output/input mechanism of the GST system, coupled with GST refunds, may provide the ideal opportunity for fraud where corrupt officials and unscrupulous businesses exploit weaknesses in the system. This again results in a defensive attitude from the Revenue Authorities, resulting in bad communication, cash flow and other GST cost. In 1992, a Free Trade Agreement (FTA) was signed which reduced import tariffs between ASEAN member countries. In the first three years of the FTA, exports amongst the ASEAN countries grew from US$43 billion to US$80 billion. In 1997, the leaders of ASEAN adopted the vision to build a stable, prosperous and highly competitive economic region, in which there is a free flow of goods, services and investments, a freer flow of capital, equitable economic development and reduced poverty and socio-economic disparities. The plan is to remove all tariffs for the six more developed countries by 2010 and for all countries by 2015. The summit also progressed the efforts to integrate ASEAN with the much larger economies of Asia- Pacific, specifically China, Japan, South Korea, India, Australia, and New Zealand. China signed a pact to introduce the worlds largest free trade zone by 2010, covering almost two billion people. Japan signed a similar agreement to take effect by 2012. India agreed to join in by 2011. Australia and New Zealand have agreed to talks starting next year to free up trade within a decade. The master plan is to have a free trade zone that can compete with the US and EU. In South East Asia, Malaysia remains one of the few countries yet to adopt the GST system, which would indirectly be in the way, if we want to be part of this master plan. In Malaysia, it was announced that essential goods and services will not be subjected to GST, but fears that GST will spark a chain reaction that will increase the prices of most non-controlled items should not be dismissed. We have seen numerous examples of when there is an increase in a certain commodity; it sparks a price rise in most goods and services. For example, when the petrol price increased to RM2.70, prices of most goods, foods and services were hiked. But after the petrol price dropped, there has not been a substantial correction in the prices of goods, food and services. The relevant ministries are powerless to mitigate the situation and curb the necessary inflation. A recent example is on the removal of the subsidy on white bread resulting in price increase of one loaf of bread by 20 to 30 cents. The Deputy Domestic Trade, Cooperative Consumer Affairs Minister can only comment that the price adjustment was not necessary, urge traders to practice corporate social responsibility and call on the consumers to execute their power in hand. All these statements will not effectively curb excessive profiteering and traders taking opportunity to increase the price of goods and service. The public would want to know how the government intends to avoid the similar predicament What is GST and how does it work? GST is a consumption tax charged on a wide range of domestic international products, goods and services. Its a broad-based tax imposed on every level of a product, from raw materials all the way to finished goods. The proposed implementation of GST will replace the current Malaysian service tax and sales tax. Broadly, GST works by offsetting GST paid on purchases (input tax) against GST due on sales or supplies made (output tax). This is referred to as the credit offset mechanism. The multi tier stages of tax helps to ensure that GST paid by businesses for purchases does not end up being a permanent cost. However, the consumer ultimately bears the burden of the tax. Conceptually, GST is imposed on the value added to goods or services by each separate processor in the production and distribution chain. This can be seen in the simple illustration below. GST to Government RM 4 + RM2 = RM6 (i.e. 4% x RM 100) i.e.4% x RM 150 = RM6 Output tax i.e. 4%x150 Less RM4 Input tax RM2 Net 4% is the assumed standard rate of GST. It is assumed that the entire output is taxable and all input taxes are creditable. FINAL CONSUMER Cost to consumer = RM 156 SUPPLIER Selling price = RM100 GST(4%) = RM 4 Total = RM 104 MANUFACTURER Cost = RM 100 Value added = RM 50 Total = RM 150 GST (4%) = RM 6 Total = RM 156 2.1 SOME CONCERN ABOUT THE INTRODUCTION OF GST. There were some concerns that Malaysians could suffer even more with the introduction of the Goods and Services Tax (GST). GST-driven inflation would be a calamity that the struggling lower-income group could do without. The GST Bill was tabled in Parliament at the end of the Budget sitting that ended on 17 December 2009. At its first reading, the bill was just mentioned, but there was no explanation of the bill or any debate. The second reading is when the bill is open for debate and proposed amendments. This may come as early as March 2010 for the GST Bill. Once approved, the new tax can be implemented as early as 2011. The table below lists the governments tax revenue for 2008 which contributed RM112.9 billion or 70 per cent of total government revenue. Government Tax Revenue in 2008 Personal Income Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 15.0 bil Company Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 37.7 bil Petroleum Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 24.2 bil Export and import duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM  Ãƒâ€šÃ‚   5.4 bil Excise duties  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 10.7 bil Sales and Services Tax  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   RM 11.7 bil As shown in the table, the biggest source of tax revenue is company tax, which at 26 per cent of declared profits, currently brings in RM37.7 billion into government coffers. Petroleum tax makes up the second biggest tax item while the tax levied on the 1.5 million individuals who are now currently paying personal income taxes in Malaysia makes up the third biggest. All these taxes are deemed progressive for they tax the richest individuals and the companies that are making profits. Progressive taxes do not burden the poorer sectors of society. Progressive taxes tend to equal out income differences between the rich and the poor in society. It was argued that regressive tax regimes, on the other hand, burden the poor. Sales taxes are generally regressive as they tax consumption and not income. But sales tax in Malaysia has different rates for different types of goods and the government can make them less regressive by levying sales taxes exclusively on good that are consumed by the richer sectors of society such as expensive cars, big houses, overseas travel, expensive restaurants and other luxury items. The Goods and Services Tax, however, is perceived to be even more regressive for it is levied at a flat rate on a very wide range of products including many items that the poorer people need to buy. It might lead to a rise in prices and would definitely hit the poorest the hardest.   As in most countries with the GST in place, a reduction of corporate tax and personal tax will follow suit. This then, is seen as the real reason that the GST is being brought in à ¢Ã¢â€š ¬Ã¢â‚¬Å" to make Malaysia more business friendlyà ¢Ã¢â€š ¬? by cutting corporate tax (which has already been reduced markedly from the 40 per cent level in 1988 to its current 26 per cent). 2.2 LACK OF INFORMATION AND CONFUSION ON GST. The piecemeal release of information is creating great concern among the people and in the business sector. For example; Will the authorities furnish an extensive list of item that will be charged GST, and what will be exempted? If a product, like rice or chicken is exempted, does the exemption apply across the board regardless of the form of the product? For example, is cooked rice or cut, frozen or marinated chicken also exempted? What is the difference between exempt and zero-rated GST? Will there be any reduction in personal and corporate tax? What changes will be made to the sales and service tax? There is a perception that as GST is a multistage tax, it would result in higher effective tax rate than 4%. As GST is very technical, most people are unaware how it will impact them. When will the GST rate be reviewed? Recent media statement on its impact did not improve opinion on the introduction of GST. It is reported that under the sales and services tax system, the burden on the poor is 2.38%, but under the GST it will be 2.17%. For the higher income group, the tax burden will be reduced from 13% to 2.74%, according to the Finance Ministry. The overall savings for households will be between RM14.52 and RM346.92 yearly. This clearly contradicts other statement from politicians, and the public perception, that the GST will be inflationary. But as no further details are provided on how the savings are arrived at, public sentiment remains negative on GST. CHAPTER 3 EXPECTED IMPACT OF GST 3.1 Impact on the people in the street. The public is generally concerned that the introduction of GST will hit their wallets directly. In an initial assessment, as the GST is expected to be lower than service tax, the bill for a restaurant meal will be 1% lower as the service tax rate is 5% and GST is 4%. For other services liable to service tax, a GST rate lower than service tax should result in a slight decrease in charges if the cost of the other components in providing the service remain the same. On goods that attract sales tax, the current rate seems higher than the proposed GST, hence there might be a reduction if there is no further adjustment. Current rates are as follows; à ¢Ã¢â€š ¬Ã‚ ¢ Fruits, certain foodstuff and building materials (5%) à ¢Ã¢â€š ¬Ã‚ ¢ General goods, including motor vehicle (10%) à ¢Ã¢â€š ¬Ã‚ ¢ Liquor and alcoholic drinks (20%) à ¢Ã¢â€š ¬Ã‚ ¢ Cigarette and cheroots (25%) For hawkers; even though they do not have a turnover of RM500,000 yearly, so are not required collect GST, the material procured, for example, noodles, fish balls, processed meat, chicken, equipments for the stall may be subjected to GST, resulting in price hike. But without detailed knowledge or mapping, or even information on the duties charged, the people are uncertain whether the prices of goods and services will remain stagnant, increase or decrease. 3.2 IMPACT ON BUSINESSES. The implementation of GST is expected to impact business in the following manner: Compliance costs are expected to be incurred as there is requirement to track the input tax and output tax to determine refund or tax to be submitted. Even though some Malaysian companies are already paying sales tax or service tax, there was no input tax to be monitored and accounted for to offset against output tax. Business process and procurement need to be mapped out, especially with respect to suppliers and promotional items. For example, a new car attract GST, but items provided for free during promotion like sports rims or a GPS system à ¢Ã¢â€š ¬Ã¢â‚¬Å" may not be eligible for an input tax claim. Likewise the corporate souvenirs and hampers given out by businesses may not be eligible. The procurement department should start detailing the sales tax or the existing tax paid for their items used a raw material. As the GST is expected to be lower than most current indirect tax, there should be some potential cost savings. This is also to avoid being overcharged by supplier that intends to add the GST over the existing price of its supplies after sales tax, there should be some potential cost saving. Human resource factor: New staff may need to be employed to ensure a business is compliant and conversant with the GST requirement. As most staff have not been exposed to GST, training needs to be conducted. Accounting system and account payable: The business would require an appropriate accounting system to keep track of the GST amounts. Most systems could be upgraded, and it is important to notify software vendors to test run the data to avoid any potential complication. Cash flow management: Businesses should be aware that output GST may have to be settled before settlement of sales invoices by customer. Meanwhile, payables on which input tax has been claimed but remains unpaid after six months have to be accounted as output tax and are to be reclaimed as input tax only after payment is made. Businesses are concerned about the timeliness of the refund process as delays would results in a higher working capital cost. In addition, businesses that have thin margins are worried about the speed of the refund for input tax, especially if the business is mainly exported-oriented and procure its raw material locally. 3.3 OTHER IMPACTS: The expected impact on corporate and income taxes are as published in the news recently. Deputy Finance Minister Chor Chee Heung quoted that Malaysia will see a gradual reduction in its corporate and income tax rates once the proposed Goods and Services Tax (GST) is in place by mid-2011. He does not think that there was a timeline for achieving this reduction in corporate and income taxes, as this is a long-term objective of the government. Once the GST come into play, it will be a broad based tax and the trend is, once GST is implemented, corporate and income taxes will gradually be reduced. Chor also disclosed that businesses related to services such as those in the food and transportation sectors, would be exempted from the proposed GST. He gave assurance that the cost of living and lifestyle of the people would not increase or be affected with the implementation of a GST. He also added that the implementation of GST would not cause inflation. Once the GST is in, the service tax and sales tax (now imposed) would be abolished. Both taxes are quite high at 10 per cent and five per cent respectively. The GST at four per cent is considered very low. Meanwhile, the Finance Ministrys Tax Review Panel Chairman, Ms. Kamariah Hussain, said there would be revenue gains of about 1.0 Billion Ringgit for the government with the GST implementation. She explained that the introduction of the GST was part of an overall tax reform in the country. With the GST, the government would have a better mix of revenue, and not be too dependent on income tax and petroleum income. Second Finance Minister, Ahmad Husni Hanadzlah had indicated that while the GST would replace the existing sales and services taxes, it would not put pressure on prices and to ease the burden of consumers, staple foods such as rice, sugar, cooking oil and flour would be exempted from it. 3.3.1 IMPACT OF GST ON SMALL MEDIUM ENTERPRISE (SME). SMEs form the backbone of the business activities of a nation. Other than encouraging the growth of new industries such as tourism and biotechnology-based industries, the Government (2004 Budget Proposals) too has singled out SMEs to spearhead domestic growth. However, there is a group of à ¢Ã¢â€š ¬Ã‹Å"unhappy people representing non-governmental organizations (NGOs) and the public who have expressed their non-approval for the introduction of the proposed GST. Their main argument is that GST favours the rich and burdens the poor at large. Their contention is that it will burden the people and contribute to the widening gap between the rich and the poor, not to mention the rise in the inflation rateà ¢Ã¢â€š ¬?. However, tax practitioner, Beh Tok Koay is of the opinion that perhaps this small group lacks an understanding of the whole system of GST. It is supposed to be broadbased and will replace the service and sales tax system, and this in turn will help to reduce income tax ratesà ¢Ã¢â€š ¬?. There could be two GST rates: a lower rate for SMEs and a higher rate for large enterprises. Imposing two GST rates is, however, difficult to administer as they provide ample room for tax avoidance and increase compliance cost. Lowering the compliance cost of GST would ease the burden of SMEs. If there is convincing data to show that the compliance cost of SMEs are lower if the accounts are computerized, then the Government could provide software packages to the licensees to enable them to correctly compute GST. Free training and seminars including visits should be extended to SMEs to enable them to have a better understanding of the compliance requirements. One other option is to exempt small busine sses from GST altogether but such a decision too has its drawbacks. The Government has to analyze the revenue gain as compared to the compliance cost before making a decision to determine the threshold limit. With the two-year window period before GST is in force, all of us have a role to play in contributing towards the development of a better broad-based consumption tax system which ultimately would help reduce the rates of income tax. No doubt, everyone especially the SMEs will eagerly await the final introduction of the GST system and the extent of the expected income tax rate cuts. The business community, NGO and charity organization are concerned about the ability of the authorities to implement GST smoothly. Australia, for example, had to bring in foreign experts to help in rollout of GST. It would undermine investor confidence if the GST is not implemented in a structured manner with minimal hiccup. Burdening the poor and those economically vulnerable: Some 32% of the household in Malaysia have an income under RM2,000 per month. The introduction of GST without the necessary revamp of subsidies will result in a heavier financial burden on poor and low-income families. Families with an income below RM2,000 a month do not have to pay personal income tax. With GST, things that are not basic necessities toys, processed food, can food, packet drinks, and so on, could increase existing inflationary pressures. The ongoing restructuring of the subsidy will also create the tension, discomfort and dissatisfaction as people eligible for subsidy could unintentionally be left out as the government establishes and tries to refine its method of distribution. CHAPTER 4 4.0 CONCLUSION GST is unavoidable. It will just be a matter of time when it will be implemented. It may not be a perfect system, but has worked well as a revenue base for other countries. Malaysias problem may lie more in public education, implementation and enforcement. To move forward, Malaysia has to conform to the free trade vision of ASEAN and cannot lag behind the other countries. As of today, apart from Malaysia, only Myanmar and Brunei has yet to implement the GST. GST modernises the tax system by addressing tax evasion committed by free riders who want every benefit but refuse to pay for it, or rather have others to pay for them. GST will certainly be a good platform to increase the Governments revenue. Concerns of it being regressive can be overcome by careful and prudent classifications of zero rated supplies and exempt supplies for essential items as against standard supplies for non essential and luxury items. One good point of starting late is the ability to learn from the mistakes of others. The government has to be fully transparent in the implementation of the proposed GST. In this borderless world, news and knowledge cannot be curbed. The masses are getting more intelligent and informed. It will not be prudent for the government of the day not to move forward towards a more modern tax system. Rather than blind opposition, critics should provide examples and lessons learnt from the weaknesses of other nations in the implementation of GST or VAT. However, based from past experience, the skeptism voiced is understandable. We have heard of past Auditor General Reports on the wastage and the leakage of public funds into the pockets of the well connected; of RM 25 screw drivers being bought through tender at a price of RM200; commissions running into millions of ringgit for the purchase of Sukhov jets and submarines; and billions swallowed in the PKFZ scandal. The sums involved are astronomical. Then we have newly built hospitals that cannot be used, court room complexes with leaked ceilings and stadium roofs that collapsed in the absence of even a small earthquake. So, whether the GST will finally proved to be good or bad for the country will remain a question mark until its actual implementation. The actual salary increase as promised by the government might not be the expected pot of gold at the end of the rainbow if the GST is not properly implemented.

Contributions Of Martin Luther King

Contributions Of Martin Luther King Martin Luther was a controversial Christian theologian who made a significant contribution towards both the development and expression of Christianity. Luther questioned the widespread corruption of the Catholic Church, exceptionally prevalent during his lifetime. He preached that faith alone justifies salvation, as opposed to good works, an emphasis being promulgated by the clergy. Additionally, Luther highlighted the importance of Scripture as he believed that the message of Jesus had become misplaced amongst an overemphasis on ritual and symbolism. He quoted Romans (1:16-17) For I am not ashamed of the Good News; it is the power of God saving all who have faithà ¢Ã¢â€š ¬Ã‚ ¦ Accordingly, Luther believed that Jesus Christ was the ultimate model for human behaviour. These three key understandings were to ultimately shape the far-reaching contribution Martin Luther would provide to Christianity. Evaluate the contribution of ONE significant person or school of thought in Christianity (6 marks) Martin Luther was a controversial Christian theologian who made a significant and far reaching contribution towards both the development and expression of Christianity. Born in 1483, Luther lived during a time of widespread corruption within the Catholic Church. Especially of concern to Luther was the sale of indulgences, simony and nepotism amongst church leadership. The impact of the Black Death had left a largely uneducated clergy in Europe. These leaders utilised many forms of corruption to ensure wealth for the Catholic Church, and promised purchasers of indulgences and relics a ticket to heaven. In response to these problems in 1517, Martin Luther nailed his 95 theses to the door of the Wittenburg Church. Luther wished to reform the Catholic Church and to reassure Christian adherents that salvation was attainable through their faith, not through good works. Additionally, Luther highlighted the importance of Scripture as he believed that the message of Jesus had become misplaced amongst an overemphasis on tradition, ritual and symbolism. He quoted Romans (1:16-17) For I am not ashamed of the Good News; it is the power of God saving all who have faithà ¢Ã¢â€š ¬Ã‚ ¦ Accordingly, Luther believed that Jesus Christ was the ultimate model for human behaviour. Luthers actions and consequent excommunication (1521) from the Catholic Church were to ultimately shape his contribution to Christianity. Although the 95 these would be addressed at the Council of Trent (1545-63), the Council essentially dismissed Luthers calls for reform. However, his impact remained. Luther inspired other reformers and ultimately a new Protestant variant of Christianity (and within it Luthers own denomination the Lutheran church) resulted. Assess the contribution of ONE significant person or school of thought in Christianity (20 marks) Martin Luther was a controversial Christian theologian who made a significant contribution towards both the development and expression of Christianity. Luther was concerned with the widespread corruption prevalent within the Catholic Church during his lifetime, and the subsequent failure of the Catholic Church to address these issues. Three key understandings would lead Martin Luther to devote his life to transforming Catholicism. Firstly, Luther reassured Christian adherents that salvation was attainable through their faith, not through good works. Secondly, he highlighted the importance of Scripture, as he believed that the message of Jesus had become misplaced amongst an overemphasis on tradition, ritual and symbolism. He quoted Romans (1:16-17) For I am not ashamed of the Good News; it is the power of God saving all who have faithà ¢Ã¢â€š ¬Ã‚ ¦ This lead to Luthers third key understanding, that Jesus Christ was the ultimate model for human behaviour. Christianity before Luther: Simony Nepotism Indulgences (Salvation) Priesthood Corruption Sacraments Papal Authority Black Death Transubstantiation (Eucharist is the body and blood of Christ) Wealth of Catholic Church inequalities and spiritual shallowness (Luther) Unethical behaviour Expression/practices over ritualised Luthers Actions: 1517 95 theses on church door Defied the Catholic Church Excommunication (1521) Ultimately, the formation of new VARIANT of Christianity (but remember this was never Luthers INTENTION he wanted to REFORM the Catholic Church). Lutheran Church based on Luthers views of what individuals need to attain Salvation Sacraments (2) Baptism and Eucharist Consubstantiation (Eucharist representative of body and blood of Christ) Salvation attainable by the individual, based on ones faith Publication of Bible in local vernacular German Scripture focus of religion Authority Jesus/God Married clergy Liturgy less formal and less ritualised Christianity after Luther: Widespread questioning of Catholic Church Birth of new Christian variant Protestantism Development of Protestant denomination: Lutheran, Calvinist Baptists, Church of England etc Whilst Luthers protests started à ¢Ã¢â€š ¬Ã‚ ¦as an effort to purify the life and teachings of the Roman Catholic Church, it eventually produced separate churches that grew into a third major strand of Christianity to stand alongside Eastern Orthodoxy and Roman Catholicism. (Living Religion text p98) Counter Reformation (the catholic Churchs response to the Protestant Reformation) Council of Trent from 1545-1563 upheld papal primacy by proclaiming that Scripture and tradition are equally important and complementary sources of Gods revelation, and by clarifying the Roman Catholic belief in the seven sacraments. The Evangelical Awakening a dramatic spiritual renewal in Western Christianity Vatican II the twenty-first ecumenical council in the history of the Catholic Church (1962-1965). Three major aims spiritual renewal in the light of the gospel, updating church teaching, discipline and organization, and the promotion of unity for all Christians (ecumenism) Describe the contribution of ONE significant person or school of thought in Islam (3 marks) Imam Al Shafi is a significant and influential person within Islamic history. Undertaking a systematic revision and organisation of the existing Muslim law, Al Shafi established a system of interpretation of Islamic jurisprudence which he termed Usul al-Fiqh. This method incorporated the already existing sources of jurisprudence, the Quran and the Sunnah, however, it dictated additional authority to both the Ijma and the Qiyas. Shafi was inspired by the teachings of Muhammad, who believed in the importance of the scholar since à ¢Ã¢â€š ¬Ã‚ ¦the cure of ignorance is to ask and learn. Evaluate the contribution of ONE significant person or school of thought in Islam (6 marks) Imam Al Shafi (767-820CE) is a significant individual within Islam. Shafi was born during a time when confusion and disorder over the Islamic law was creating social instability and corruption within society. Al-Shafi wished to resolve the differences between the two existing schools of thought in order to create a uniform response to situations which arose throughout the many new Islamised states, à ¢Ã¢â€š ¬Ã‚ ¦his historic achievement was to forestall the development of independent regional systems based on Medina or Kufaà ¢Ã¢â€š ¬Ã‚ ¦ (Ruthven) Shafi dedicated himself to this task in his firm belief that the purity of the faith had to be maintained. Al Shafis creation of a unified system of jurisprudence subsequently allowed greater cooperation within the Islamic world. In the Kitab al-Risala, Shafi outlined Usul al-Fiqh which emphasised the importance of the Quran, Sunnah, Ijma and the Qiyas. Of these he believed that the Quran as the divine word of Allah held the most significance. Additionally, Shafis commitment to determining the isnad, or chain of transmission of the hadith, earned him enormous respect amongst scholarly circles. Shafis interpretation of Islamic jurisprudence eventually led to the creation of the third major Sunni school of thought. This interpretation of Sharia law continues to be followed by millions of Muslims in contemporary society. Assess the contribution of ONE significant person or school of thought in Islam (20 marks) INTROUCTORY REMARKS: Muhammad ibn Idris al-Shafi (767-820) significantly influenced the development of the Islamic faith. Responsible for establishing the four foundations of fiqh (usul al Fiqh), Al-Shafi is considered the founder of a unified interpretation of Islamic law or jurisprudence. Furthermore, through the consequent evolution of his own school of Islamic thought, Al-Shafi continues to make a significant contribution to the development of both the belief and practices of Islam in the contemporary world. BASIC OUTLINE BEFORE Al-Shafi: Social and economic tensions problems raised by ruling and administering a diverse and rapidly growing empire Often geographic and cultural influences determined the response of the interpretation of the law Al-Shafi believed that laws which were valid in one place were not necessarily so in another and therefore required systemisation to ensure the purity of the Islamic faith. Legal decisions had come to be based on tradition of the people not Muhammad this was because Difficulty interpreting Islamic law following death of Muhammad TWO schools of law already established Imam Malik (700-767) and Imam Hanifa (716-795) Rationalists based their beliefs on the teachings of the Quran. However, Quran had little legislative material (Hanifa) Traditionalists based their beliefs on the teachings of the Sunnah. However, the model of living (Sunnah) encountered new challenges which needed to be addressed (Malik) THEREFORE: A revision and systemisation of Islamic law needed. Shariah is not a clearly articulated set of rules available for immediate reference. Instead, it includes interpretations of revealed sources the Quran and the Sunnah. Shafi insisted on an established set response to these situations which could be applied across the newly Islamised states Shafi joined the Hadith scholars to determine the chain of transmission (isnad) and therefore the authenticity of the hadith Shafi studied under Malik and combined his own interpretation, along with that of Malik and Hanafi to create a synthesised response. According to Ruthven: Despite the differences between the three principal schoolsà ¢Ã¢â€š ¬Ã‚ ¦ they were generally agreed in accepting the system of roots developed by Shafi. For that reason his role as the greatest systematiser of early Islamic law makes him more than just the founder of one of the four madhhabs. Viewed retrospectively, his historic achievement was to forestall the development of independent regional legal systems based on Medina or Kufaà ¢Ã¢â€š ¬Ã‚ ¦ this supreme intellectual achievement makes Shafi one of the great unifiers of Islam. RESPONSE: Shafis book Kitab al-Risala Usul al-Fiqh (or al-Risala) cited FOUR sources of Fiqh (practical application of the Sharia): Quran words of Allah Sunnah actions of Muhammad Al-Shafi puritanical view Muhammad words, not those of his companions. Isnads to be authentic (in accordance with the chain of transmission) Ijma (consensus) of the Muslim community. Previously the ijma of the scholars (ijtihad) had been consulted the Quran and the Sunnah. Shafi insisted on the ijma of the people. Qiyas (analogy) strict systematic reasoning Al-Shafi believed that because Allah had provided, in Sharia, a guide for all human life, it must be possible to extend, by use of analogy, the application of legal material in the Quran and the Sunnah so that they apply to other cases. An example of his contribution to the expression of Islam can be found in his interpretation of Sura 4:43 which claims that men are unclean for prayer if they have touched women. This was taken by Shafi to mean any physical touching including accidentally bumping into a woman. It was therefore further extended to apply to the practice of washing before prayer (ghusl). This was Al-Shafis system of determining Islamic jurisprudence. There are many different interpretations based upon the five different schools: Hanafi, Maliki, Shafi, Hanbali (Sunni) and Jaffari (Shia). The School of Islamic Fiqh, established by Imam Al-Shafis students, provides interpretations of law which are used by all four Sunni schools of law. Islamic legal tradition practices pluralism that allows it to maintain that these schools may differ in their legal opinions, but remain equally valid (they have consulted the same sources to reach a legal decision). Describe one significant practice within Christianity (3 marks) The sacrament of Baptism is a rite of passage undertaken by adherents symbolising their initiation into the Christian tradition. Although not all Christians identify with the physical nature of the rite, such as the age of the initiate and the rituals utilised, all Christians are marked with the sign of the cross. Similarly, all Christians are baptised with the recitation of the words, I baptise you in the name of the Father, and of the Son, and of the Holy Spirit. The belief in the Trinity, the rejection of Satan and the forgiveness of sins are common elements in the baptism ceremony across the Christian variants. Demonstrate how one significant practice within Christianity expresses the central beliefs of this religious tradition (6 marks) Baptism begins the spiritual journey for the adherent within their faith community emphasising the importance of being in touch with, and striving to understand, the transcendent. Baptism symbolises the divine nature of the Christian tradition and makes present the central beliefs through the repetition of sacred stories and ritualistic actions. The belief in the Trinity, the rejection of Satan and the forgiveness of sins are common elements in the baptism ceremony across the Christian variants. In each of the Christian variants, baptism is the Churchs way of celebrating and enacting the embrace of God and the promise of salvation. Peter replied, repent and be baptisedà ¢Ã¢â€š ¬Ã‚ ¦ (Acts 2:38-39). At the time of Christ it signified that the person being baptised became a follower of Christ and acquired a relationship with him. à ¢Ã¢â€š ¬Ã‚ ¦I (Paul) also baptised the house of Stephanasà ¢Ã¢â€š ¬Ã‚ ¦ (1 Corinthians 1:16) Early baptisteries (the part of the church where baptism happened) showed that a person was led down steps to be immersed in water before emerging on the other side. There was, and remains, an identification with Jesus dying and rising. The Catholic Catechism recognises that à ¢Ã¢â€š ¬Ã‚ ¦From the beginning, the revealed truth of the Holy Spirit has been at the very root of the Churchs living faith, principally by means of baptism. Within Orthodox Christianity the rite of baptism has four roles. Firstly, to remove original sin, to remove all other sins committed before the time of baptism if the person is beyond the age of infancy, to unite the person to the community of believers and to open the door of salvation and eternal life to him or her. Analyse one practice within Christianity explaining its significance to both the individual and the faith community (20 marks) The sacrament of Baptism is a rite of passage undertaken by believers in celebrating, symbolising and making present the central beliefs of the religious tradition of Christianity. It is an experiential religious act involving the transformation of the individual. Baptism as a rite of initiation welcomes the individual into the Christian tradition and links the individual, community and divine. However, not all Christians identify with the physical nature of the rite. Quakers believe that the whole of life is sacramental. To be a member of Christs body involves no outward rite, it requires instead an inward transformation of ones whole life. While other denominations have differences involving the rituals used and the age of the initiate. Baptism celebrates a familys and a communitys love for the initiate who is welcomed into the community of believers. The candidate (infant or adult) is provided with a god-parent/ sponsor to help them with their initiation as a Christian. Baptise first the children, and if they can speak for themselves let them do so. Otherwise their parents or other relatives speak for them. (Hippolytus in the Apostolic Tradition c.215) For Catholics, the sacrament of Baptism is the first step in a lifelong journey of commitment and discipleship. It is followed by years of catechesis before being completed late by Confirmation and the Eucharist, the summit of Christian initiation. Baptism is the Churchs way of celebrating and enacting the embrace of God and the promise of salvation. Peter replied, Repent and be baptised (Acts 2: 38-39) Baptism happens not only to the individual, but also the wider Church. At the time of Christ it signified that the person being baptised became a follower of Christ and acquired a relationship with him. I (Paul) also baptised the household of Stephanas (1 Corinthians 1:16) The rite is celebrated with the community present and actively participating. It is the community, who will journey with them throughout their life. Infant Baptism is the preferred form of the rite for both Catholic and Orthodox Christians. However, adult Baptism may also occur. The Christian initiation of adults for both Catholic and Orthodox Christians begins with their entry into the catechumenate and reaches its culmination usually at Easter in a single celebration of the three sacraments of initiation: Baptism, Confirmation and the Eucharist. Baptism symbolises the divine nature of the Christian tradition. It emphasises the importance of being in touch with, and striving to understand, the transcendent. This includes comprehending the purpose of life and the nature of life after death. Early baptisteries (the part of the church where baptism happened) showed that a person was led down steps to be immersed in water before emerging on the other side. There was identification with Jesus dying and rising. On behalf of the child (infant baptism) or as an adult the ceremony of initiation occurs. This includes the symbolism of water and oil and the declaration of faith. The water represents life and recalls the baptism of Christ by John the Baptist. The Baptisimal candle symbolises Christian status as an Easter people, and signifies the passing on of faith to those being baptised. The white garment represents the Churchs belief that Baptism sets them free from Original Sin and lets them put on Christ. Immediately following the baptism of the child in Orthodox Christianity Chrismation occurs. In this practice, the Orthodox Church differs from the Roman Catholic and Protestant Churches where the two sacraments are often separated. Orthodox Christians believe baptism is a personal participation in Easter the death and resurrection of Christ, and Chrismation a personal participation in Pentecost- the coming of the Holy Spirit as the children receive the seal of the gift of the Holy Spirit (Romans 8). The child then receives new clothes. The Priest together with the Godparent and the child walks around the Font, three times. Each time he chants: As many of you as have been baptised into Christ, have put on Christ. Alleluia. (Galatians 3:27) The infant is then tonsured, where four pieces of the childs hair are cut in the sign of the cross. As the child is now recognised as a full member of the church he/she receives Holy Communion. Baptism makes present the central beliefs of the Christian tradition through the repetition of sacred stories and ritualistic actions. Baptism begins the spiritual journey for the adherent. The lighting of the Pascal (Liturgical Year) Candle at the Catholic ceremony, links the initiated to a life of union with the Church. This candle is light for the individual at their Baptism and again at their funeral service. The candidate is also marked with the common sign of the initiated the sign of the cross and the recitation of the words, I baptise you in the name of t he Father, and of the Son, and of the Holy Spirit. The belief in the Trinity, the rejection of Satan and the forgiveness of sins are all evidenced in the Baptismal ceremony. The catholic Catechism recognises that From the beginning, the revealed truth of the Holy Spirit has been at the very root of the Churchs living faith, principally by means of Baptism. Within Orthodox Christianity the rite of Baptism has four roles. Firstly, to remove original sin, to remove all other sins committed before the time of Baptism if the person is beyond the age of infancy, to unite the person to the community of believers and to open the door of salvation and eternal life to him or her. The Gospel read at the ceremony reinforces the belief in the presence of God. And Jesus came and said to them, All authority in heaven and on earth has been given to me. Go therefore and make disciples of all nations, baptising them in the name of the Father and of the Son and of the Holy Spirit, teaching them to observe all that I have commanded you; and lo, I am with you always, to the close of the age. (Matthew 28 16-20) The Baptist Church takes its name from the conviction that followers of Jesus should be immersed in water as a visible and public display of their faith. Baptists believe There is no salvation apart from personal faith in Jesus Christ as Lord. Baptists emphasise a believers baptism by full immersion, after a public profession of faith in Christ as saviour. Unlike most Christian denominations Baptists do not baptise infants because of their belief that a person must be old enough to make a public profession of faith in order to be baptised. Therefore, the foundational sacrament of Baptism unites the community of believers. It determines the spiritual life journey of the believer and reinforces the central tenets of the faith to those who witness the initiation of the individual. Describe one significant practice within Islam (3 marks) The fifth pillar of Islam, Hajj, is seen as the ultimate expression of Muslim solidarity. Hajj draws together Muslims from all over the world forming one umma in order to worship the One God. The Quran states perform the visit and pilgrimage to Makkah for Allah (Sura 2:196) explaining that Hajj is a re-enactment of the trials and tribulations of the Prophet Abraham, his second wife, Hagar, and his son, Ishmael (linking believers to the central Islamic belief rusula). The Hajj also re-enacts the journey of Mohammad and is hence a metaphor for the journey of life. The ultimate goal of Hajj is to ensure the achievement of God consciousness (tawid).