Proposal To Reintroduce Gst Requires Meticulous Study Muhyiddin


 


Prime Minister Muhyiddin Yassin said the government would study the proposal by various parties including industry players, academicians and members of the public for the goods and services tax (GST) to be re-introduced.
He said it was incumbent on the government to be meticulous in studying the effectiveness of the multi-stage tax system in contrast to the single-tier consumption tax applied in Malaysia currently, which is the sales and services tax (SST) and the value-added consumption tax applied by many countries.
“Various aspects including strengths and weaknesses of the current SST, and the GST model that was introduced in 2014 must be taken into account to determine the viability of GST or any consumption tax model prior to it being implemented,” he said.
Muhyiddin said this in an interview with local media in Putrajaya today.
He said the study was needed to determine the overall impact of such taxes if implemented, on the economy, the people’s cost of living as well as the ability of the taxes to combat the black economy.
“I understand that there are those who are of the view that GST is a more efficient tax system and the collection is also bigger than SST. However, we have to study it meticulously.
“The Ministry of Finance had also looked into this matter but has not reached a decision. The government will announce once a decision is made,” he said.
He also added that any form of consumption tax that is to be introduced must be simple to administer and not increase business costs. - Bernama


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