Rethinking The Tax Regime
The Ministry of Finance has set up a committee to study various ways to enhance government revenues, including the proposal to reinstate the Goods and Services Tax (GST), as part of the government’s initiative to review different options to fill government coffers that have been depleted by the pandemic.
“Based on our experience, we need to consider the economic landscape, the impact to the rakyat, the readiness of the systems; so there is a lot of factors to consider and it’s a huge change,” said Ng Sue Lynn, Head of Indirect Tax of KPMG in Malaysia.
“Reinstating GST will definitely broaden the tax base, but the question is when is the correct timing to do so and that is something the committee will need to study. Not only when, but also how much is the rate. If the man on the street is already suffering due to the economic slowdown, then trying to squeeze more from him may not be a good move at this stage,” she added.
Listen to the full interview on BFM89.9.
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