Malaysian government has not ‘ruled out’ the possibility of reintroducing the Goods and Services Tax (GST) in the future, said Deputy Finance Minister Ahmad Maslan.

He said the government is still studying the impact of implementing the GST in the current economic situation and assessing the appropriate time for it to be reintroduced to help raise the country’s revenue.

“The government has not planned to bring back the GST as announced in the Budget 2023. However, we are not rejecting this (discussion) of the GST. It is just that it will not be implemented this year.

“GST can be a progressive tax in the future, by having zero-rated goods and services used by the bottom (B40) group,” he said at the Dewan Rakyat (lower house of Parliament) Thursday.

Ahmad also explained that about 90 per cent of countries around the world – including those on the value-added tax (VAT) regime – have implemented the GST.

“A total of 174 countries have implemented the GST. It is impossible that they made a mistake when they made that decision.

“Therefore, the GST can help (the country) raise more income in the future, which in turn can be used to help those who are in need and to eradicate poverty,” he said.

Source: NAM News Network