- OECD recommends Malaysia reintroduce GST at a low rate with targeted social transfers
- Strategy aims to generate additional revenue to meet short-term deficit target
- Consumption taxes like GST are stable, less harmful to economic growth, and harder to evade
- Malaysia shifted from single-stage tax system to value-added tax system
- Sales tax and service tax were part of previous tax system
- GST was introduced in 2015 but faced implementation issues
- Government reinstated SST in 2018 on a smaller tax base
- OECD also recommends strengthening tax administration for additional tax revenues
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
