GST to be in October Budget?

KUALA LUMPUR (Aug 28): The government may include a 4 percent goods and services tax (GST) in its upcoming October budget to tackle a fiscal deficit that has widened to 14.9 billion ringgit ($4.5 billion), a local newspaper said on Wednesday.

The Malaysian Reserve newspaper quoted the Finance Ministry's secretary general, Mohd Irwan Serigar Abdullah, saying several economic reforms to bolster the country's fiscal position were being discussed.

"I am not ruling out (GST), it is in the pipeline. But let us wait for the budget. It is a whole package for everybody," Mohd Irwan was quoted as saying.

He added that the fiscal policy committee is exploring several measures including rationalising subsidies and curbing government spending.

"These are some measures that are in the pipeline. The prime minister will announce them in the coming days or in the budget," he was quoted as saying.

The implementation of GST could help the country broaden its tax base and reduce the government's reliance on dividends from state oil company Petronas or Petroliam Nasional Bhd.

Malaysia runs relatively high government debt of 53 percent of gross domestic product and one of Asia's highest household debt levels.

Ratings agency Fitch cut its outlook on Malaysia's A-minus sovereign debt to negative from stable in July, citing a lack of reform to tackle rising debt.



najib manaukau said...

The imposition of GST is not an option it is a forgone conclusion ! That was I told all of you so numerous occasions before the GE , just remember that if you are lucky it will be just the GST more kind of taxes will be introduced soon. No more free 500 ringgits plus another 500 ringgits ! From now just be prepared to pay and pay so that Ali Baba and all the thieves in Umno can go on stealing and stealing.