KUALA LUMPUR: The implementation of the Goods and Services will increase the government’s tax revenue to RM31.4 billion annually over the next five years compared with RM15.5 billion collected through the previous Sales and Services Tax.
The Economic Planning Unit (EPU) of the Prime Minister’s Department said the additional revenue would strengthen the government’s fiscal position during the Eleventh Malaysia Plan (11MP).
It also said the GST, which was implemented on April 1 this year, would further enhance efficiency and effectiveness of the existing taxation system.
“The government is committed towards meeting its fiscal consolidation target of a balanced budget by 2020 by continuing and expanding upon the structural reforms initiated during the 10MP.
“The main strategy to enhance fiscal flexibility under the 11MP is to strengthen the efficiency of revenue collection and to undertake more disciplined and prudent use of government funds,” the EPU said in the Eleventh Malaysia Plan Report released today. – Bernama