Financial system minister Rafizi Ramli says the federal government isn’t ruling out the reintroduction of the products and companies tax (GST). Though the nation’s precedence was to roll out the capital positive aspects tax subsequent yr, he stated that different types of taxes, together with GST, will probably be thought of within the effort to widen the nation’s income base, The Star reviews.
“We will probably be open and undergo no matter means we will to attain fiscal sustainability by way of a wider income base – whether or not goes to be capital positive aspects tax, GST or every other types of direct and oblique taxes,” he informed reporters following the tabling of the twelfth Malaysia Plan (12MP) mid-term evaluate in parliament as we speak.
“One of many methods to widen our income base is to develop and roll out capital positive aspects tax in 2024, and the federal government will follow that technique,” he stated. As for different potential avenues of income assortment, these stay open. “We’ll determine on a case-to-case and year-to-year foundation,” he stated in response to a query about whether or not the federal government had plans to revive GST.
Rafizi added that any announcement close to any introduction of a brand new tax or income stream can be made by the finance ministry from one price range announcement to a different.
Final week, MCA president Datuk Seri Wee Ka Siong referred to as on the federal government to carry GST again, as many companies had been reportedly dodging taxes underneath the current gross sales and repair tax (SST), leading to diminished income for the federal government.
Wee stated that the GST might be revived with a number of enhancements, such because the introduction of an exemption record, zero-rated provide and giving monetary assist to the poor with elevated authorities income. He additionally urged that the reintroduction be made at a decrease charge and elevated over a time period.
The GST changed the gross sales and repair tax (SST) in April 2015, however was then scrapped in favour of bringing again SST in September 2018 when the Pakatan Harapan authorities took over the reins.
In March this yr, prime minister Datuk Seri Anwar Ibrahim had reiterated that Malaysia wouldn’t reinstate the GST or every other broad-based consumption tax within the close to future. He stated the nation was merely not prepared for the reintroduction of GST, with the rakyat‘s revenue and threshold first needing to be elevated and at an inexpensive stage earlier than the tax might be reinstated.
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