Govt open to studying GST-SST combination for more progressive tax system
PUTRAJAYA: The government is open to studying a combination of the Goods and Services Tax (GST) and Sales and Services Tax (SST) as part of efforts to develop a more progressive tax system.
PUTRAJAYA: The Malaysian government is open to examining a combined GST-SST model as part of its efforts to create a more progressive tax system, according to Prime Minister Datuk Seri Anwar Ibrahim. The Prime Minister has expressed willingness to review and refine the country's current tax framework, including potential adaptations of certain GST features into the existing Sales and Services Tax (SST) structure.
Anwar has repeatedly expressed concerns about the potential impact of introducing GST alone, as it would essentially necessitate taxing individuals, including those who have never paid taxes before. This could pose challenges for the government, considering the current economic pressures faced by Malaysians, who are already grappling with rising living costs and financial constraints.
As a result, the government has opted to utilize SST as a foundation for potential improvements, while remaining open to exploring specific adjustments that could be implemented if deemed beneficial.
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