Malaysia GST Bill gets green light

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.

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