As Budget 2022 approaches, many worry about the new introduction of taxes and the form they will take. Can new taxes be imposed without causing too many negatives repercussions for the industry, which is still reeling from the impact of the pandemic?
Nicholas Crist, Executive Director of Corporate Tax at KPMG in Malaysia commented “GST or VAT has in many countries proven to be a very successful mechanism for raising revenue. Malaysia had GST until recently, admittedly only for 3 years. GST or VAT has proven to be very effective as it is a very timely tax, in that you typically collect it when people are spending, so they have their cash to pay the tax.”
“It’s also efficient in the businesses act as the tax collector for the government, so it is quite an economic tax but unfortunately in Malaysia the timing which it was originally introduced was maybe not ideal. So one option would be to relook at introducing GST,” he further explained.
Watch full video via the link.
– Astro Awani: Budget 2022: Should GST be reintroduced?