Malaysia GST Bill gets green light
- 27 May 2014 | Richard Asquith
The new Malaysian Goods & Services Tax Bill has been ratified by both houses of the country’s parliament, and will shortly be gazetted. It will come into force on 1 April 2015 at 6%.
To support the introduction of the new tax, which replaces the existing Sales Tax, there is a packed programme of initiatives. These include:
- Customs training for small and medium sized enterprises
- Ministry of Finance training events
- Change over courses for current Sales Tax registered businesses
Most of the country’s neighbors have higher rates: Thailand 7%; Philippines 12%; Vietnam 10%; and China VAT 17%. The plan for the new GST is to replace the existing Government Sales Tax 10% on goods and 6% Service Tax on many services. The new GST is seen as extending the tax base, and making the fiscal policy fairer and more transparent for consumers and businesses alike.