GST highly accepted, says tax consultant Deloitte
The significantly higher collection from the Goods and Services Tax (GST) is proof that it has been well-implemented and highly accepted, according to tax consultant Deloitte Malaysia.
The company’s GST and customs leader Tan Eng Yew said the broad-based consumption tax had assisted the government in lessening the impact from the drop in oil and gas revenue, while allowing it to address other important economic concerns such as subsidy rationalisation.
“With the weakness in the oil prices likely to continue for the next 18 months or more, the GST should continue to be a fortunate assistant,” he told Bernama.
Tan said this in response to Prime Minister Najib Abdul Razak’s recent statement that the country’s economy was stable, due to the GST contribution.
He said since implementation of GST on April 1, 2015, the government had collected over RM51 billion in revenue, compared with a collection of RM32.7 billion in 2014 without the GST.
In a related development, Tan welcomed the Customs Department’s move to deploy its officers to selected foreign countries which had implemented the GST, for some time.
“They can benefit from the experience and best practices of administering and resolving the practical issues the GST brings,” he said.
Tan highlighted that Australia and the United Kingdom (UK) had embraced a business-friendly and collaborative approach to GST audit management, and there are useful guidelines that would work well in Malaysia, given the similarities in the administrative systems.
Customs Department director-general Khazali Ahmad had said officers would be posted to selected countries such as the UK, Australia and South Africa for two weeks from March onwards to gain experience and learn more about the GST implementation there.
- Bernama
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