May 18, 2013

Malaysia GST - money spinner for the government

Now that the 13th Malaysian General Election (GE) is finally over on May 5, 2013, talks are resurfacing about the implementation of GST in Malaysia.

Recently the Minister in the Prime Minister's Department, Idris Jala,  spoke at the forum "GE13 - What it means for business?"  and mentioned that with the introduction of  the GST, a new taxation mechanism for Malaysian, it   "can guarantee additional revenue of RM20 billion to RM27 billion, at maturity."  The term 'at maturity' refers to the period when "every Malaysians starts to contribute towards the GST ".

Just to put things in perspective, the Malaysian Government debt for year 2012 stands at RM 543 billion, which is equivalent to 53% of the Gross Domestic Product GDP.  With the introduction of GST, the Malaysian Government will be able to reduce the debt level, and also provide extra funds for the government to spend on the well-being of Malaysians

Source : The article above is extracted from a report  entitled GST Implementation To Add Up To RM27 Billion To Malaysia's Income, which is published  here (May 17, 2013)



    

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