Country Needs Economic Boost but No Plans to Reintroduce GST at This Juncture
The government does not deny that the implementation of the Goods and Services Tax (GST) is one of the financial instruments which could boost the sustainability of the country’s economic position in the future.
The Ministry of Finance, however, said to re-implement GST at this juncture is not appropriate due to the economic challenges this year, expecting relatively high food inflation and moderate economic growth.
“The government has no plans to reintroduce GST. Any policy changes related to tax need to take into account the impact on the economy and the people’s cost of living.
“Accordingly, the government is always monitoring the current economic situation and considering fiscal measures that are appropriate for short and medium-term needs,” the ministry said on the Parliament’s website on Tuesday.
The ministry was responding to a question from Datuk Seri Richard Riot Jaem (GPS-Serian) who wanted to know whether GST would be reintroduced.
The ministry also said that in relation to the tax initiatives that will be taken in the near future, the government, in the presentation of Budget 2023, has announced the proposed imposition of tax on luxury goods as well as the extension of excise duty on products related to electronic cigarettes and on vape liquids containing nicotine in 2023.
In addition, the government will study the appropriateness of the introduction of capital gains tax for the disposal of shares of companies which are not listed on Bursa Malaysia from 2024.
Source: The Edge Markets