THE government will reveal the measures it wants to adopt to generate revenue for the country in the coming Budget 2024 scheduled to be tabled in October, says Prime Minister Datuk Seri Anwar Ibrahim (pic).
“I will explain this during the tabling of the Budget, regarding taxes and generating the country’s income so that we can spend according to our ability and to reduce the deficit,” he told the Dewan Rakyat yesterday.Anwar said this in response to Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) who asked if the government is planning to introduce a new tax regime and how Putrajaya plans on generating more national income.
Dr Wee also asked if the plan to tax the rich will be implemented on Jan 1, 2024.
“For the 12th Malaysia Plan, we need to spend RM90bil yearly plus RM15bil.
“I am worried about our source of income. How do we generate income?
“On consumption tax which we previously called GST, is there a willingness on the government’s side to look at this as a source of income?
“Also, is there a plan to improve on the shortcomings that have happened before this on the GST, such as reducing its rate from 6% to 4%?” said Dr Wee.
In March this year, Deputy Finance Minister Datuk Seri Ahmad Maslan said the government has not ruled out the possibility of reintroducing GST.
He said the government is still studying the impact of implementing GST in the current economic situation and assessing the appropriate time for it to be reintroduced to help raise the country’s revenue.
With the twin shocks of increased spending and economic downturn due to the Covid-19 pandemic, economists said Malaysia is in need of funds to replenish its depleted coffers.
Economic experts said while reintroducing GST might be a good idea, improvements and corrections must be done first before its second outing.
