kopiandproperty.com readers would know that I am for Goods and Services Tax (GST) and not for Sales and Service Tax (SST). There are certainly good reasons and advantages of GST which is a tax implemented by over 160 countries around the world. Yes, that includes that country everyone loves to compare us against, Singapore. Or… are we saying that the government of Singapore made a wrong decision?
The Organisation for Economic Co-operation and Development (OECD) is also supporting the suggestion to reintroduce the GST in the medium term. Article in themalaysianreserve.com The Organisation for Economic Co-operation and Development (OECD) secretary-general Mathias Cormann said the Malaysian government first needs to strengthen tax compliance and efficiency of tax collection, while securing the transparency of its enforcement.
He said that overall tax base could be broadened through reviewing tax relief and exemptions. He said, “The overall design of the personal income tax could also be strengthened through reviewing its tax base, which has been narrowed by various tax relief and exemptions. Some of these tax relief and exemptions would be less targeted and regressive, adding administrative costs.”
OECD also suggests the government to enhance overall social protection, including through social transfers targeted at low-income and vulnerable households. Please do read the full article here: Article in themalaysianreserve.com
Hopefully it will really be back sooner than later regardless of the government of the day
Some friends (with finance understanding) say GST can be reintroduced with a lower %. I am okay with this suggestion. We just need to put in the plans to slowly increase the % and expand this tax base. With a broader tax base, the government will face less pressure with its tax collection. Enough of politics lah. SST is certainly inferior versus GST.
In fact, with a broader tax base, this will ultimately help with one particular rating from one particular international rating agency who now rated us BBB versus A previously. Hope this international rating agency takes note yeah. Happy anticipating more and more different taxes if GST is not back. Remember all those tax rumours before the pandemic came yeah.
Next suggested article: Inheritance tax. Good or bad?