MUDA urged the government to re-implement the GST to ensure a stronger economy and a sustainable source of revenue for the government.
MUDA Vice President Zaidel Baharuddin said in a statement that GST is more comprehensive and transparent than SST.
GST would be a better tax system
Zaidel Baharuddin says the focus should be on having a more comprehensive tax system to compensate for the shortcomings and loopholes of the SST. While there will be concerns that reintroducing the GST may affect inflation or higher commodity prices that affect the end consumer, the government could consider implementing a lower tax rate.
The government can also implement mechanisms to mitigate the impact of implementing the GST. He believes that the government needs to have diversified revenues and reduce its over-reliance on oil and gas revenues. He also believes that Malaysia needs a more transparent and robust tax system to help the government manage and collect taxes, which can also ensure an additional sustainable form of revenue for the country.
