Govt should institute bolder tax reforms to meet deficit target

RAM Rating Services Bhd senior economist and head of economic research Woon Khai Jhek

KUALA LUMPUR: The government should institute bolder tax reforms and not just rationalise subsidies to achieve its deficit target of between 3.0 per cent and 3.5 per cent by end-2025, said RAM Ratings senior economist Woon Khai Jhek.

He said the tight fiscal space remains a key impediment to achieving ambitious goals, further exacerbated by the government’s intention to pursue fiscal consolidation, as it targets a somewhat steep fall in fiscal deficit to between 3.0 per cent and 3.5 per cent by end-2025.