KUALA LUMPUR, Nov 20 — The government has not planned to change the rate of the goods and services tax (GST) which has been set at six per cent, said the Ministry of Finance.
In a written reply, which was circulated to the media during the Dewan Rakyat sitting today, the ministry explained that the rate was fixed after a detailed study has been made to ensure it was at the most appropriate rate for Malaysia.
The ministry had said this in reply to a question by Khalid Abdul Samad’s (PAS-Shah Alam) who wanted to know whether the government would consider reducing the GST rate from six per cent.
“The government always wants to ensure that the country’s tax system covering direct taxes, including corporate and individual tax rates, as well as indirect taxes, can promote economic development and sustain the country’s competitiveness in the long run,” he said.
Among the factors that took into account the impact of the GST rate changes included the impact of economic growth, consumer price index and investment inflows, including foreign investors, he said. — Bernama