GST great, but needs fixing before reintroduction: experts

[superadmin]

KUALA LUMPUR – With the twin shocks of increased spending and economic downturn, no thanks to the Covid-19 pandemic, Malaysia is in sore need of funds to replenish its depleted coffers.

The government thinks the answer is Goods and Services Tax (GST), a very unpopular consumption tax introduced in 2015 that generated RM44 billion in 2017.

Economists agree for the most part but say improvements and corrections must be done first before its second outing.

“We are good at coming up with a new scheme or new approach or a new system, but quite miserable when it comes to maintaining it,” said Associate Professor Ahmed Razman Abdul Latiff, economic analyst at Putra Business School.

When the Covid-19 pandemic hit, Malaysia lost an average RM2.4 billion daily during the first Movement Control Order (MCO) in 2020. The economy contracted 5.6%, while unemployment reached an all-time high at 5.3%.



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