Malaysia should focus on tax revenue collection, not SST vs GST – Expert
KUALA LUMPUR: Malaysia’s tax debate should focus on enhancing revenue collection rather than choosing between the Sales and Service Tax (SST) and the Goods and Services Tax (GST), said an expert.
Malaysia's tax policy should concentrate on improving revenue collection rather than debating between the Sales and Service Tax (SST) and the Goods and Services Tax (GST), according to an expert. Dr Veerinderjeet Singh, KPMG Malaysia's senior advisor on tax policy, emphasized that the nation already possesses the necessary taxes, with the main challenge being ensuring their effectiveness and revenue generation.
He discouraged the introduction of new tax types, as Malaysia already has income tax, SST, and various duties in place. The expert also highlighted the difficulty in incorporating GST elements into the existing SST framework due to the lack of legal provisions for an input-output tax mechanism. Key obstacles include tax invoicing, input-output tax mechanisms, and refunds.
Malaysia should focus on enhancing the efficiency of its tax collection agencies, notably the Inland Revenue Board (IRB) and the Customs Department, to maximize revenue from existing taxes.
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