Allow GST’s tax refund for business-to-business deals, govt told
A tax expert and an economist say this would stop taxes from piling up before goods and services reach consumers with higher costs.
Experts have urged the Malaysian government to incorporate GST refund components into the existing sales and service tax (SST) scheme for transactions between businesses. This refund mechanism, known as cascading taxes, would prevent businesses from paying tax again on costs that have already been taxed, which can lead to higher prices for consumers.
Economists suggest that integrating GST components into the SST, particularly for business-to-business transactions, would lower input costs for businesses and potentially result in lower prices for consumers. The government should carefully consider a phased approach to implementing such changes, ensuring that essential goods and basic services remain protected from taxation, and that the new system remains simple and easy to navigate for businesses.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Allow GST’s tax refund for business-to-business deals, govt told freemalaysiatoday.com
