This has been simmering for decades – Malaysia has finally announced a GST. As most of you know, GST (Goods and Services Tax) is the same as VAT.
There are no details yet on the specifics of the GST, but the expectation is that it will look like the GST in neighboring Singapore.
Note that Malaysia has announced a GST in their Budget before, only to cancel their plans later on.
Malaysia boleh, indeed.
“The GST Bill was then tabled for the first reading in 2009 for implementation in late 2011, but was withdrawn during the second reading in 2010 following fierce public resistance.
But Najib signalled yesterday that Putrajaya is finally ready for the measure, following the revision of its sovereign debt outlook from “Stable” to “Negative” in July by rating agency Fitch Ratings owing to rising government debt and budget deficit.”