KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim has stated that details on measures to generate revenue for the country will be disclosed during the tabling of Budget 2024 in October. He mentioned that this would include information on taxes and strategies to reduce the fiscal deficit. Anwar made these comments in response to questions raised by Datuk Seri Dr Wee Ka Siong regarding the government’s plans for a new tax regime and methods to increase income. Dr Wee also inquired about the implementation of taxing the wealthy starting from January 1, 2024.
Anwar expressed concern over the country’s income sources while highlighting the need to spend RM90 billion annually, along with an additional RM15 billion, as part of the 12th Malaysia Plan. He also addressed the possibility of reintroducing the previous consumption tax known as the Goods and Services Tax (GST) and whether the government would consider reducing the tax rate from 6% to 4% to address previous shortcomings.
In March of this year, Deputy Finance Minister Datuk Seri Ahmad Maslan stated that the government was not ruling out the reintroduction of GST. He added that the impact of implementing GST in the current economic situation was being studied to determine the appropriate timing for its reintroduction. On September 13, Economy Minister Rafizi Ramli mentioned that the government favored non-regressive taxation methods over the controversial GST. He explained that while GST is an efficient and transparent tax system, reintroducing it would further burden low-income households.
Economists have emphasized the need for funds to replenish Malaysia’s depleted coffers, given the dual challenges of increased spending and economic downturn caused by the Covid-19 pandemic. While reintroducing GST may be considered a viable option, experts suggest that necessary improvements and corrections should be made before implementing it again.
Credit: The Star : News Feed
