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Malaysian GST implementation to miss 2014

  • Oct 19, 2013 | Richard Asquith

Malaysian GST implementation to miss 2014

Plans to introduce a Goods and Services Tax (GST) in Malaysia look destined to miss the latest timetable of 2014.

The 2014 Budget, due to be presented to Parliament this week, will probably not include details of the GST, which is due to replace the existing Sales and Service Tax of 10% and 6% respectively.

Malaysian GST much needed tax reform

Malaysia has long planned to update its antiquated indirect consumption tax, which is complex and can lead to double taxation.  It has similar problems to the Indian VAT reform, with many missed attempts to overhaul the tax for an OECD-based VAT-like regime as applied in Europe, Australia, Canada and elsewhere.

Whilst many economists have stated that 4% revenue neutral is the best rate for the new tax, government sources have indicated that 6% is the more likely.  The government is concerned that it maintains its current rating with the credit agencies.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.