A controversial Goods and Services Tax will take effect from 1 April next year in Malaysia. The rate is fixed at 6 per cent and the existing Sales Tax and Service Tax will be abolished.
In some quarters, particularly in the business sector, GST is a welcome change to the current system. Along with the other reform measures the Government has announced, such as subsidy rationalisation, it is hoped these changes will help strengthen the country’s economy.
But the government is going to have a rocky ride implementing the new tax system amidst a storm of public protest. Following the unpopular subsidy cuts recently announced, the GST bill has evoked mass protests across Kuala Lumpur as Malaysians contend with the rising cost of living.
For more information on Malaysia GST visit the official website:www.gstmalaysia.co