It’s been a few years since we last heard about the Goods and Services Tax (GST) in Malaysia.
It was abolished in 2018, but now there is news that it could be reintroduced again.
According to Bernama, The Ministry of Finance (MoF) has set up a committee to study various revenue-enhancing measures, including the possibility of reintroducing GST.
Maybank Investment Bank (Maybank IB) Research quoted Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz saying this at a recent dialogue session.
He said that a study was being done to analyse weaknesses in the tax regime, the impact of new taxation on the economy, options for new taxes such as carbon tax and digital tax, rationalising tax incentives, improving tax administration and enhancing tax audits, such as implementing tax identification numbers and enhancing data analytics.
GST in 2021?
“Timing is also important — especially on any new taxes — so as not to disrupt the economic recovery process,” Tengku Zafrul said.
“2021 is a transition year from crisis to recovery.”
Meanwhile, economic experts also suggest that GST could help bring a positive impact to not only the country but to the people.
University Malaysia Sarawak’s Economic Associate Professor Profesor Datuk Dr Shazali Abu Mansor said that he welcomes the return of GST due to the efficiency of the tax that could help generate Malaysia’s income from RM40 billion to RM50 billion a year, as reported by Sinar Harian.
However, the tax must be modified and should only be applied to luxury items and not basic necessities such as rice, drinks, electric, water, education, etc.
So, Malaysians, what do you think? Should the GST make a comeback or not?