The government has not ruled out the possibility of reintroducing the goods and services tax (GST), Deputy Finance Minister Ahmad Maslan said today.
He said the government was 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.
“The GST can be a progressive tax in the future, by having zero-rated goods and services used by the bottom (B40) group,” he said during the Dewan Rakyat’s question-and-answer session today.
He was responding to RSN Rayer (PH-Jelutong) who asked whether the government would reintroduce the GST which he said had previously burdened the people.
Ahmad said about 90% of countries around the world, including those on the value-added tax 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.