16 May 2018
JUST IN: GST in Malaysia will be at 0%, down from 6%, as of June 1, 2018.
Malaysia says GST reduced to zero per cent from 6 per cent, fulfilling PH promise
KUALA LUMPUR – Malaysia’s goods and services tax (GST) will be reduced from 6 per cent to zero per cent on June, the Finance Ministry said on Wednesday (May 16).
Prime Minister Mahathir Mohamad said earlier that he had instructed the government to stop collecting GST.
Abolishing the GST was a major promise made by the Pakatan Harapan (PH) coalition should they win the May 9 general election.
“All registered traders must follow the decision of the zero rate now. At the same time, registered businesses are still subjected to all current regulations,” said the ministry in a statement.
The ‘zero per cent’ move means that the deeply unpopular GST is effectively abolished.
But the Malaysian parliament would need to repeal the GST Act 2014 before the consumption tax could be totally removed.
The new government has said it would bring back the Sales and Services Tax to replace the GST.
13 May 2018
Guan Eng tells Customs that GST must go
Incoming finance minister says he has taken note of the ‘spirited defence’ of the tax but the new government will keep its election promise.
GEORGE TOWN: Incoming finance minister Lim Guan Eng said today that the government had taken note of the “spirited” defence of the Goods and Services Tax by the Customs Department but would go ahead and repeal it anyway.
He said the abolition of GST was among Pakatan Harapan’s campaign promises and it was a priority to get rid of the consumption tax. “However, I cannot give any instruction until I am sworn in as finance minister. We’ve taken note of the spirited defence of GST by the Customs,” Lim said.
He had been asked at a news conference whether he had already ordered the Customs to abolish the tax.
GE14: Abolishing GST, reinstating fuel subsidies won’t affect economy — Daim – The Edge Markets
KUALA LUMPUR (May 13): The new government under Prime Minister Tun Dr Mahathir Mohamad will ensure that the abolishment of Goods and Services Tax (GST) and the reintroduction of fuel subsidies will not adversely affect the Malaysian economy.
The government’s newly set-up Team of Eminent Persons is confident of shelving GST and reinstating fuel subsidies as they have the relevant expertise and experience.
“We have got to analyse GST and fuel subsidies. Once we have removed GST, most importantly we’ll get rid of corruption and wastage and become more efficient. We have done it before, (for) 57 years there was no GST… there was no problem.
“We can handle this. There is no reason why the economy can be at stake and be worse off, don’t worry.
“Basically, the fund managers are more worried about GST. They are afraid that the debt would increase. We are not going to increase the debt anymore. We are not stupid.
“This is unnecessary speculation. This is a normal reaction when a new government takes over. How could there be uncertainty as the manifesto is there and everything is there,” former finance minister Tun Daim Zainuddin told Bernama after chairing the newly formed Team of Eminent Persons meeting here on Saturday.
Malaysia can afford to scrap GST, says PM
KUALA LUMPUR: Malaysia has sufficient revenue to abolish the Goods and Services Tax, according to Prime Minister Tun Dr Mahathir Mohamad.
As reported by Bernama, the Pakatan Harapan (PH) chairman also informed that the government would conduct a research of Malaysia’s economic state including on the exact amount of the country’s debt.
Meanwhile, he said the mechanism being used to determine petrol prices will be maintained for now, pending a new study on the matter.