Malaysia’s new Fiscal Responsibility Act may pave the way for reintroducing the Goods & Services Tax (GST), possibly at a 4% initial rate, according to OCBC Treasury Research. The Finance Ministry intends to table the act in Parliament, aiming to widen the tax base and improve compliance. Although past GST implementation faced challenges, rising subsidy bills and limited fiscal options may push the government towards GST to address revenue gaps amid increasing fiscal strain.NEW LAW TO PAVE WAY FOR GST COMEBACK IN MALAYSIA?
Malaysia’s new Fiscal Responsibility Act may pave the way for reintroducing the Goods & Services Tax (GST), possibly at a 4% initial rate, according to OCBC Treasury Research. The Finance Ministry intends to table the act in Parliament, aiming to widen the tax base and improve compliance. Although past GST implementation faced challenges, rising subsidy bills and limited fiscal options may push the government towards GST to address revenue gaps amid increasing fiscal strain.
