TimYang.Com :: Geek Blog

Is this a SALES tax or a CONSUMPTION tax?

I have built up a list of places in Malaysia where I will never step into again:

  • Starbucks

  • McDonalds

  • Burger King

  • Sanfrancisco Coffee

Basically all the burger and coffee places.

Some time ago, very quietly, each of them began installing a new price system in their tills. It adds a 5% sales tax to every bill -- passing off the government's sales tax to the consummer. While McDonalds has the policy of rounding DOWN this extra amount, Sanfrancisco Coffee and various others have decided to round it UP.

Either way this practice is entirely ILLEGAL.

The sales tax is incurred by large companies based on the amount that gets passed into their tills. The companies are taxed -- NOT the customer. By right, the tax should be bourned by the company and not the consumer. Instead, these companies have turned it from a SALES tax into a CONSUMPTION tax by passing on the costs.

Boycott these places.


Posted by: Tim on Sat Jan 31 | Profile


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