The federal government has reiterated that it has no plans to reintroduce the items and companies tax (GST) anytime quickly. In response to prime minister Datuk Seri Anwar Ibrahim, it’s because the revenue threshold of many Malaysians stays too low, because the New Straits Instances stories.
Basically recapping what he acknowledged final October, the PM stated that whereas GST is an environment friendly and clear tax system, it could be inappropriate to implement it now on condition that decrease‑revenue teams, particularly these incomes round RM2,000 a month, are usually not but able to bear the burden.
“Though some would possibly contemplate it a good method, many low‑revenue earners would nonetheless be impacted regardless of sure exemptions. Even when we exempt necessities like rice and sugar, these identical individuals nonetheless should spend on different items and companies, together with transportation. GST impacts each a part of their every day lives,” he stated.
Anwar, who can be the finance minister, stated final 12 months that the GST will solely be reimplemented if the minimal month-to-month wage threshold will get to RM3,000-RM4,000, which might preclude its reappearance within the brief to medium time period.
The tax was first launched in April 2015 at a fee of 6% (which diminished costs for some vehicles at that time) however was then scrapped in 2018 when Pakatan Harapan got here to energy, being changed by the ten% gross sales and repair tax (SST). Since then, the potential of GST has been mooted a number of occasions
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