Govt will improve GST if it's reintroduced - Zafrul
He said improvements will also be made to prevent confusion in the classification of taxable and non-taxable goods as well as to enhance the skills of government officials.
“Any new taxation system also needs to be...
The Goods and Services Tax (GST) will be improved in terms of its reimbursement process, business compliance, and overall administration if the government reintroduces it, says Finance Minister Tengku Zafrul Abdul Aziz.
He said improvements will also be made to prevent confusion in the classification of taxable and non-taxable goods as well as to enhance the skills of government officials.
“Any new taxation system also needs to be approved by Parliament and, if we take into consideration the requirement for public engagement as well as improvements to the existing system, it is doubtful that the GST could be implemented this year,” he said in the 98th Laporan Kewangan Rakyat (LKR) released today.
Zafrul noted that the national revenue collection as a percentage of gross domestic product (GDP) last year was relatively low at 15.1 percent compared with other countries in the region such as Singapore, Thailand, and the Philippines. Tax revenue, meanwhile, stood at 11.2 percent of GDP.
Hence, he said, the government needs to broaden its revenue base to distribute it in a more meaningful manner via development programmes that will benefit all of Keluarga Malaysia (Malaysian Family).
“However, before the government introduces any new tax, it must ensure that the economic recovery post-Covid-19 is on a stable and solid track,” he added.
Meanwhile, Zafrul said Budget 2023 will focus on facilitating full employment and re-employment as well as social protection for those who are self-employed and working in the informal sector.
It will also focus on the employment and re-employment unemployed graduates, women who left the labour force, persons with disabilities, and the long-term unemployed.
The minister said focus will also be on skills upgrading and reskilling programmes, raising productivity through digitalisation, and ensuring the people receive fair wages, including through a minimum wage review.
“Interventions are also required to ensure basic food security in order to curb the surging prices of basic necessities, and to ensure government resources are spent on those who need them through targeted subsidies.
“In summary, Budget 2023 will continue to support economic growth and focus on reforms to improve the rakyat’s wellbeing, income, and social protection, as well as the competitiveness of Malaysian businesses and the move up the value chain.
“It will also strengthen the government’s fiscal position and the nation’s resilience to withstand future shocks,” he added.
- Bernama
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