No GST... yet, depends on economic situation - Zafrul
KUALA LUMPUR - No Goods and Services Tax (GST) mentioned in Budget 2023 tabled today but will be further discussed in the Cabinet.
Finance Minister Tengku Datuk Seri Zafrul Aziz said however, the decision to implement the tax will depend on the country’s economic condition next year.
"We didn't announce GST in the budget this year, however, discussions on GST will be begin in the Cabinet.
“It depends on the nation's economy next year," he said in the press conference after presenting Budget 2023 in Parliament Building today.
Looking at the revenue this year, Zafrul said that the nation have a positive correlation to the economy.
"In 2023, we expect the economy to be moderate, and Malaysia will be impacted globally.
"Of course, this year the revenue was helped by major dividend payment by Petronas amounting to RM50 billion, so next year we don't assume (to be) the same,” he said.
Commenting further, Zafrul said more tax cuts were to be expected for the M40 groups.
"There will be some impact in terms of tax cut, but the amount of money that is being freed to the economy is expected to give the multiply impact, especially tax cuts for the M40 group," he said.
GST was implemented by the Barisan Nasional government on April 1, 2015 at a rate of six per cent.
However, after Pakatan Harapan won the 14th General Election in 2018, the tax system was abolished in August the same year and replaced by the Sales and Services Act (SST).
Today, Zafrul tabled the Budget 2023 themed "Keluarga Malaysia, Prospering Together" which allocates a total of RM372.3 billion.
The budget is aimed by 3R agenda which is Responsive, Responsible and Reformist.