Cash payments are harder for tax collectors to track, so with the implementation of the GST in April 1, 2015, the Government is encouraging e-payments to improve efficiency.
KUALA LUMPUR: Malaysia's new consumption tax is a boon to IT companies that stand to win infrastructure contracts and fees – provided they can convince people to switch to electronic payments in a country where 91% of transactions are in cash.
The 6% goods and services tax (GST) that Prime Minister Najib Razak announced in his annual budget speech on Friday is aimed at narrowing a budget gap that is expected to hit 4% of gross domestic product this year.
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