Wahid: Goods and Services Tax integral part of fiscal plan

KUALA LUMPUR: The Goods and Services Tax (GST), which is scheduled for implementation on April 1 next year, is an integral component of the strategic fiscal transformation package to fulfill the fundamental structure of the country’s economy, said Minister in the Prime Minister’s Department, Datuk Seri Abdul Wahid Omar.

He said GST has been proven to be a better tax system as it was more effective, efficient, transparent and business friendly, and could spur economic growth as well as increase competitiveness in the global market.       “GST is also capable of generating a more stable source of revenue because it is less susceptible to economic fluctuations,” he said in his keynote address at Channel NewsAsia Business Insights Malaysia 2014 Forum here today.

Abdul Wahid said the government expects the fiscal deficit to further decline to 3.5 % this year, after having reduced from 6.7 % in 2009 to 3.9 % in 2013 by restructuring the existing tax system and rationalising fuel subsidies. — Bernama