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KUALA LUMPUR: The previous government’s decision to abolish the goods and services tax (GST) has affected the country’s revenue to some extent, said Deputy Finance Minister I Datuk Abd Rahim Bakri.
He said this was because the country was facing a revenue shortfall when the GST was abolished and replaced by the Sales and Services Tax (SST).
“GST was introduced in 2015 before the then government decided to abolish the tax system in 2018.
“Judging from the data, the GST collection was RM 44 billion per year and the total during its implementation was RM 133.1 billion, while the SST collection was RM 21 billion a year,” he told wrap up the debate on the 2020 sales tax law (amendment) in Dewan Negara here today.
He said that the GST collection was higher as the tax system was more comprehensive and applied to all taxable goods and services at all stages, compared to the SST, which was considered a single stage tax. and it applied only to manufacturers.
“Approximately 597,000 people registered under GST while only 46,519 registered under SST … and some 12,000 types of products were taxed under GST but only 6,000 items under SST,” he said.
However, Abd Rahim admitted that there was a weakness in the implementation of GST, which has indirectly affected people.
He said the government would consider the views and acceptance of all parties, including the people, on the possible reintroduction of GST. – Called
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