Refined SST system could create more efficient tax environment – EY
KUALA LUMPUR: A refined sales and services tax (SST) system incorporating measures to minimise tax cascading, broaden the tax base and strengthen compliance could help create a more neutral and efficient tax environment for businesses, according to EY Malaysia’s Tax Managing Partner Farah Rosley.
KUALA LUMPUR: EY Malaysia's Tax Managing Partner Farah Rosley has outlined potential improvements to Malaysia's sales and services tax (SST) system. Farah suggests incorporating measures to minimize tax cascading, expand the tax base, and strengthen compliance. She believes targeted business-to-business reliefs and refinements to current exemption mechanisms could reduce tax costs within supply chains while maintaining SST as a tax on final consumption.
Farah emphasized that any changes must include clear policy guidance, consultation, and ample transition time for businesses to adapt. She stressed that simplicity, ease of compliance, and certification for taxpayers should remain crucial throughout the reform process. The 2027 Budget is expected to be presented by Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim on October 9.
Farah anticipates the budget will include well-designed SST reforms to address challenges such as tax cascading and access to exemptions. This would support Malaysia's fiscal reform agenda and contribute to long-term economic growth.
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