KUALA LUMPUR: The government has been urged to consider reintroducing the goods and services tax (GST) at a rate of two per cent, proposed by MRANTI Corporation Sdn Bhd chief executive officer Datuk Wira Dr Rais Hussin Mohamed Ariff.
He suggested that the government need not rush to reinstate the GST at the previous rate of six per cent but instead begin at a lower rate of two per cent.
“GST is an efficient tax system. We could begin with two per cent,“ he said.
Dr Rais pointed out that shops, restaurants, businesses, and small and medium enterprises (SMEs) already have the required infrastructure, with most items currently zero-rated.
“By introducing GST at two per cent and building from there, we must also ensure there is no leakage in spending. InshaaAllah, this could evolve into one of the more efficient systems,“ he added during the ‘Madani Economy: Economic Structuring and Improving People’s Quality of Life’ discussion programme, aired on Bernama TV.
He also called on the government to expedite the processing of refunds, stressing that claims should not be delayed for up to a year.
Malaysia introduced the GST on April 1, 2015 and abolished it in July 2018.
