Malaysia Mulls Return of Consumption Tax to Bolster Finances
- Goods and services tax was repealed in 2018 after Najib ousted
- Malaysia has one of the lowest tax collection rates in region
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Malaysia is weighing the return of a broad-based consumption tax instead of implementing subsidy cuts for a commonly-used gasoline as the government seeks to bolster its finances, according to people familiar with the matter.
Prime Minister Anwar Ibrahim’s cabinet has been discussing the viability of bringing back the goods and services tax, the people said, asking not to be identified as the information is private. No decision has been reached given the political sensitivities, they added.