Goods and Services Tax (Malaysia)
A goods and services tax in Malaysia (GST), a value added tax, was scheduled to be implemented by the government during the third quarter of 2011, but has not yet been implemented. The government is still studying the possible impact of the tax and has not yet decided when it might come into effect. Its purpose is to replace the sales and service tax which has been used in the country for several decades. The government is seeking additional revenue to offset its budget deficit and reduce its dependence on revenue from Petronas, Malaysia's state-owned oil company. The 6% tax will replace a sales-and-service tax of between 5—10%.
The Goods and Services Tax Bill 2009 was tabled for its first reading at the Dewan Rakyat (the lower house of the Malaysian parliament) on 16 December 2009. It was delayed amid mounting criticism. The government responded by asserting that the tax on oil income will not be sustainable in the future. National Consumer Complaints Centre head Muhammad Sha’ani Abdullah has said, “The government should create more awareness on what the GST is. The public cannot be blamed for their lack of understanding, and thus, their fears”. Sha’ani says that the GST will improve accounting, reduce tax fraud, and facilitate enforcement of the upcoming Anti-Profiteering Act. Muslim Consumer Association of Malaysia leader Datuk Dr. Ma’amor Osman said the GST could help end dishonest business practices, but expressed concern about how the tax would be applied to medical products and services. A group leading the campaign against the GST, Protes (which objects to the GST because of concerns about its effects on low-income Malaysians), cancelled a planned protest but has stated that they will continue to agitate against the legislation.
During the government reading of the 2014 budget, Malaysian Prime Minister Najib Razak announced a GST tax of 6% starting on April 1, 2015. This will replace the Sales and Services Tax. Implementing GST tax will be a part of the Government’s tax reform program to enhance the capability, effectiveness and transparency of tax administration and management.
- RON95 petrol, diesel and LPG
- Electricity up to 300 Kwh
- All local and imported fruit
- Types of bread, tea, coffee and noodles
- Medication for treatment of 30 diseases
- Reading materials and newspapers
- "Govt may impose GST at 4%: Husni". SinChew. 2009-11-26. Retrieved 2010-02-26.
- "Dewan Negara: Implementation Of GST Still Being Studied". Bernama / MLTIC. 2013-10-10. Retrieved 2013-10-11.
- "GST Implementation Is To Place Malaysia At Par With Developed Countries, Says Ahmad Husni". Bernama. 2010-02-19. Retrieved 2010-02-26.
- "GST May Bring Down Other Forms Of Taxation, Says MIER". Bernama. 2010-02-11. Retrieved 2010-02-26.
- "Parliament: GST Bill tabled for first reading (Update)". TheStar Online. 2009-12-16. Retrieved 2010-02-26.
- "Finance minister: No second reading of GST Bill for now". Malaysian Insider. 2010-03-14. Retrieved 2010-03-15.
- "Pakatan flays government over GST delay". Malaysian Insider. 2010-03-15. Retrieved 2010-03-15.
- "Government defends GST delay, scoffs at PR’s victory claims". Malaysian Insider. 2010-03-15. Retrieved 2010-03-15.
- [Creating awareness on GST is needed, says NGOs, by Azreen Hani, The Malay Mail, 15 March 2010, http://www.mmail.com.my/content/30256-creating-awareness-gst-needed-says-ngos]
- "Pakatan MPs give budget thumbs down, say it’s nothing new | Free Malaysia Today". freemalaysiatoday.com. Retrieved 2015-01-11.
- "DPM: GST will boost the economy | Free Malaysia Today". freemalaysiatoday.com. Retrieved 2015-01-11.
- "Malaysia to introduce GST at 6% from April 2015 - SE Asia - The Straits Times". straitstimes.com. Retrieved 2015-01-11.
- "Essential items, services to be exempted from Malaysia's GST - SE Asia - The Straits Times". straitstimes.com. Retrieved 2015-01-11.
- "Why Malaysia needs GST", Malaysia, 30 September 2014.
- "Malaysia Budget 2015: GST, tax breaks and higher payouts among highlights, AsiaOne Malaysia News". news.asiaone.com. Retrieved 2015-01-11.
- "RON95, diesel and sundry goods exempted from GST | Malaysia | Malay Mail Online". themalaymailonline.com. Retrieved 2015-01-11.
- Chartered Tax Institute of Malaysia
- Goods & Services Tax at Royal Malaysian Customs Department
- Goods & Services Tax at Ministry of Finance, Malaysia
- Difference between Grade A (Advanced) and Grade B (Basic) GST Certified Vendor by Royal Malaysian Customs
- List of certified GST Vendor published by Royal Malaysian Customs