KUALA LUMPUR: Rafizi Ramli has stated that bringing back the goods and services tax (GST) is still a possibility. The Economy Minister mentioned that while the current plan is to introduce a capital gains tax next year, other forms of taxes will also be considered. He stated, “One of the strategies to widen our revenue base is to develop and roll out a capital gains tax in 2024, and the government will stick to that strategy. We are open to exploring all possible ways to achieve fiscal sustainability through a broader revenue base, whether it be capital gains tax, GST, or any other forms of direct and indirect taxes. I prefer to keep that strategy flexible, deciding on a case-by-case and year-to-year basis.” Rafizi made this statement after the tabling of the 12th Malaysia Plan mid-term review in Parliament on Monday (Sept 11).
In response to a question about reintroducing the GST under the 12MP, Rafizi stated that any announcements regarding new taxes would come from the Finance Minister during the unveiling of the annual budgets. On September 7, MCA president Datuk Seri Dr Wee Ka Siong urged the government to bring back the GST, proposing several improvements such as an exemption list, zero-rated supply, and providing financial aid to the poor using increased government revenue. Several economists also supported this suggestion, agreeing that the GST should only be revived if accompanied by a clearer mechanism.
During the tabling of the 12MP mid-term review, Prime Minister Datuk Seri Anwar Ibrahim emphasized the need for fiscal reforms to ensure sustainable and effective management of the country’s finances. These reforms include expanding the tax base, diversifying the tax revenue stream, and managing the tax system using technology. Additionally, the introduction of a capital gains tax next year is part of the fiscal measures.
Credit: The Star : News Feed
