KUALA LUMPUR: Malaysia’s parliament on Wednesday (Aug 8) approved the abolition of the Goods and Services Tax (GST) introduced three years ago.
The Goods and Services Tax (Repeal) Bill 2018 was passed by a voice vote after being read for the third time by finance minister Lim Guan Eng.
When reading the Bill for the third time, Lim said that “the GST is finally dead”.
Earlier, when winding up the debate on the Bill, Lim said the Sales and Service Tax (SST), to be reintroduced next month, would be easier and would help reduce the cost of living compared to the GST which was charged at various levels.
The GST collection of 470,000 traders amounted to RM44 billion in comparison to the RM21 billion revenue earned through SST from 70,000 traders, he said.
“It is clear that the tax administration and tax compliance costs will be much easier and more efficient for traders who directly contribute to the welfare of the people,” he said.
The six per cent GST in Malaysia was introduced on Apr 1, 2015 to replace the SST.