KUALA LUMPUR – The government should consider a sustainable and comprehensive method of expanding income by reintroducing the goods and services tax (GST) at a reasonable rate, said Senator Tan Sri Low Kian Chuan.
This is expected to strengthen the government’s revenue collection, said Low – who is also president of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) – while debating Budget 2023 at the Dewan Negara today.
“ACCCIM fully supports the reintroduction of GST. We suggest improving the reimbursement system and setting the annual threshold value at a reasonable level.
“(For example), let’s say RM1 million with voluntary registration to ensure that businesses, especially small and medium enterprises, are GST-free,” he said.
Low also suggested that the proposed Fiscal Responsibility Act include aspects on the control of contingent liabilities borne by the government.
This would ensure that the federal government’s financial statements are based on “accrue accounting”, which would provide a holistic and accurate picture of the country’s current financial position, he said.
Previously, Prime Minister Datuk Seri Anwar Ibrahim emphasised that the government currently remains committed to not reintroducing taxes and is confident that with efficient collection enforcement, the revenue collected would increase the national income.
Anwar said Malaysia is not ready to reintroduce GST because the people’s income is still low compared to countries that have adopted the tax, such as Singapore and Canada. – Bernama, April 3, 2023
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