KUALA LUMPUR – The Finance Ministry has set up a committee to study various revenue-enhancing measures, including the possibility of reintroducing the goods and services tax, said Maybank Investment Bank (Maybank IB) Research.
In a note released today following a dialogue with Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz on Friday, Maybank IB Research quoted him as saying that other measures include analysing weaknesses in the tax regime and the impact of new taxation on the economy; studying options for new taxes, such as carbon tax and digital tax; rationalising tax incentives; improving tax administration; and, enhancing tax audits, such as implementing tax identification numbers and enhancing data analytics.
“Timing is also important – especially for any new taxes – so as to not disrupt the economic recovery process.
“The year 2021 is a transition year from crisis to recovery,” the minister was quoted as saying.
Over the medium term, Tengku Zafrul said the government is committed to lowering the budget deficit to 4% of gross domestic product by 2023.
“The key strategy will be on enhancing revenue given the limited scope to cut spending, such as 95% of operating expenditure comprises ‘locked-in’ obligations, like emoluments, debt service charges and retirement charges.” – Bernama, November 23, 2020
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