What does that mean if the people around you started to spend on big tickets item again? This means that the economy started to move again. Why is it important? This is because the definition of good or bad economy is depends on the velocity of money turnover, when u have money come in then u will feel rich and then you will spend when the speed increase then you will feel good. This had help to stop the vicious cycle and clear the overhand which helps to start the positive cycle. Hence this is the 1st benefit of having tax holiday.
Assuming that the revenue were generated equally in each month, hence RM44b divide by 12 = RM3.67b.
This mean that if the government stop collecting GST for 1 month, then there will be RM3.67b remain in the pocket of consumer. If 2 months then it would be RM7.33b, and if 3 months then it would be around RM11b.
This can also be called as ECONOMY STIMULATION or QE from the government! This can help to stimulate the internal demand of the country. On the other hand, the effect of this RM15.68b is even greater than RM15.68b, why? This is because of the multiplier effect!
C = consumption
I = Investment
G= Government spending
Nx = Export – Import.