These key principles of flexibility, efficiency, transparency, and the ability to be tax neutral (ie tax everyone equally) are some of the key reasons why many economists and tax policy experts favour the GST. So how is the SST different from this? The critical differences are that SST has a narrow focus, it only focuses on manufacturers, importers, and service providers who provide services that the Government has determined in scope
As we get closer to the tabling of another Budget, we are beginning to hear murmurs and speculation on whether the government would seek to reintroduce the Goods and Services Tax (GST).
In my opinion, while it would be difficult to do so in the short term, it does need to form part of the longer term conversation of what we would like the tax system in Malaysia to look like.
Many of you have heard the reasons of why GST was or should be implemented, reasons such as it “widens the tax base, ” it is “efficient” and “flexible, ” it is “transparent” which makes it is harder to “evade” and “over 150 countries have implemented it” and so therefore it must be a good system.
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