The government expects to earn an additional revenue of RM3 billion in the first year the Goods and Services Tax (GST) introduction starting April next year, Deputy Finance Minister Datuk Ahmad Maslan said.
He said the additional revenue was expected to increase to RM9 billion in the second year of the GST implementation and the extra income would be spent for the benefit of the people.
The GST is expected to expand the economy by 0.3%, while reducing hidden economy or incidence of tax evasion by 15%.
As the GST could spur the export sector growth by 0.5%, he said a refund scheme for tourists would be introduced to encourage them to spend.
Ahmad said the provision of input tax credit for companies and manufacturers through the implementation of the GST would help reduce business costs, thereby reducing prices of certain goods and services.
He said the GST, set at 6%, could help Malaysia become a developed country as it abided by international standards.
Source: The Rakyat Post