- Economists are divided on reintroducing Malaysia’s GST, with some praising its efficiency and revenue stability, while others warn of increased cost-of-living and negative impacts on small businesses.
- Proponents argue GST is more efficient and broad-based than SST, reduces tax evasion, and can be made less regressive with targeted exemptions and subsidies.
- Critics claim GST is outdated for the digital economy, failed to reduce deficits, increased prices, and disproportionately burdened lower-income groups and small businesses.
- Concerns include GST’s regressive nature, compliance costs for small firms, and the risk of repeating past policy failures.
Source: businesstoday.com.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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