I believe everyone in Malaysia is amazed and excited (and we still are) with the announcement made by our government that the Good and Service Tax (GST) would be zero-rated starting from 1st June 2018.
Due to this announcement, it's important for us to take the initiatives to explain to our dearest customers about how all this change of tax would affect you and what will happen to our brand - the most important thing, the selling price.
From what we've learnt from our government as of today (23 May 2018)1, all products and services will be taxed at 0% GST from 1st June 2018 onward until it's to be replaced by the 10% Sales and Service Tax (SST) which will be re-introduced later.
How would this affect you?
On June 1, everyone will enjoy lower prices on all purchases of goods and services except exempted items. But... the story does not end there. The government plans to replace GST with SST to cope the shortfall of tax income which set to be at 10%1.
One of the main differences between GST and SST is, GST is payable by consumers where SST is payable by the manufacturers/importers. In a simple explanation, GST is not considered as part of the product cost where SST is an additional cost to businesses. Therefore, in short, removal of GST may not lead to lower prices if SST comes into effect2.
What will happen to our brand?
Malaysians will have a “tax holiday” that will see a gap between when the Goods and Services Tax (GST) is abolished at the start of June and when the Sales and Services Tax (SST) is introduced.3
Therefore, during this period of time, every customer will enjoy lower prices on all our products.
Here's a little surprise for you as our customers, we will introduce our Four Cow Farm Reward Programme and hoping to bring more benefits and values to our dearest customers.
Psst! The reward programme has already started two months ago for a test run. You may enjoy the benefits now without waiting for the official launching.