Malaysia Gets a New Sales & Service Tax
What Just Happened?
In a last‑minute fiscal twist, the Mahathir‑led government announced that the Goods and Services Tax (GST) will officially go out of business – a zero‑per‑cent proof‑of‑death for the tax from June 1.
Why the Tax is Vanishing
- In 2015, Najib Razak slapped GST on the nation when oil prices were low.
- With the 2018 election, the new administration decided the tax is a drag on the economy.
- They’ve kicked it out as part of a broader shift to make Malaysian trade more competitive.
How Malaysia Will Keep Cash Flowing
To keep the fiscal coffers from gaping, the Ministry of Finance says it’s lining up a suite of revenue‑boosting and spending‑cutting measures. The highlight? A sales and service tax that’s set to roll in soon, though the exact launch date remains under wraps.
Key Takeaways
- GST to be set to 0% effective June 1.
- Sales & Service Tax to replace lost revenue – timeline TBD.
- Taxes are part of a larger revenue strategy being announced shortly.
