KUALA LUMPUR, Oct 1 — The Malay Chamber of Commerce Malaysia is urging the Anwar government to bring back the goods and services tax (GST) introduced in 2015 and abolished by the Pakatan Harapan government in 2018.
Citing its president Norsyahrin Hamidon, Sinar Ahad reported today that the consumption tax is a solution to the black market problems that impedes the country’s economic and financial growth, besides giving Bumiputera businesses a boost.
“Now if possible we want the government to fight the black economy because there are individuals who don’t pay taxes, making the government’s income low.
“It is seen to be able to eliminate the black market because many cartels and individuals who evade tax cannot do so because GST is the most efficient tax regime,” Norsyahrin was quoted as saying.
He said the GST could reduce the government’s dependency on corporate taxes, which could later be lowered once Malaysia’s financial strength returns.
Economy Minister Rafizi Ramli has said the government has not discounted reintroducing the GST.
But he said its current top strategy to expand the country’s revenue sources include developing capital gains tax that will be implemented next year.
The GST was rolled out in April 2015 under the Najib government at a rate of 6 per cent and proved to be highly unpopular as it was levied at every stage of the supply chain.
It was replaced by the sales and services tax, at a rate of 10 per cent as a final charge on sales of goods, and 6 per cent for services.