Broader tax base among possible ways to address income inequality

KUALA LUMPUR: Efficient fiscal policies that may include broadening the tax base and enhancing tax administration while ensuring inclusive economic growth are needed to address the income inequality issue in Malaysia, says RHB Investment Bank Bhd (RHB IB).

In a note, the investment bank said addressing income inequality would require a comprehensive approach and the implementation of policies focusing on progressive taxation, social safety nets, equitable access to education as wall as skill development.“The government’s tax revenue as a percentage of gross domestic product has declined over the years, thus, a broader tax base revenue is required to improve the tax base,” it said.