Where Does The Money Come From?

GST Bill tabled, fierce debates expected

http://www.themalaysianinsider.com

Wednesday, December 16, 2009

Read the full article here.

..."government is estimating an increase of RM1 billion in tax collection or RM13 billion"...

..."businesses save RM4 billion from GST while exporters, RM1.4 billion, he claimed."...

Consumers buy products and services from businesses; Businesses pay tax to government.

When government collects RM1 billion more tax, we are expecting the businesses to pay RM1 billion more tax to balance up the equation so that the consumers do not need to pay more. However, the businesses are still saving RM4 billion. Then who's responsible for the government's RM1 billion extra tax, and the businesses RM 4 billion saving?

In lay man mathematic, this does not look right at all, probably the economists can enlighten us how this is being calculated.