Government Prioritizes SST Over GST to Stabilize Economy and Meet Fiscal Targets by 2028

• Government focusing on SST instead of GST to stabilize economy and meet fiscal deficit target by 2028
• Rolling out GST system would take 14-18 months with no additional income during that time
• Need to strike a balance between facilitating growth, creating wealth, and improving societal well-being
• Commitment under Fiscal Responsibility Act to achieve fiscal deficit targets by 2028
• SST regime easier to institutionalize compared to GST system
• Increase in SST rate in March with mechanisms in place to avoid ‘tax-on-tax’ mechanism
• Extending reach of SST for revenue growth without distorting economic impact
• Government committed to Ekonomi Madani framework for long-term wealth and economic stability
• Focus on practical solutions to balance economy, extending SST instead of introducing GST
• Introduction of e-invoicing in August to make financial transactions more transparent and monitor compliance

Source: thesun.my

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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