KUALA LUMPUR, MARCH 30 — World Bank Poverty and Equity Senior Economist Kenneth Simler today said abolishing the Goods and Services Tax (GST) in Malaysia will not be easy as it will have an impact on the country’s economy.
He said Malaysia will have to face three impacts from the abolishment, which is raising other taxes, run on deficit, and reducing the expenditure.
“Whether it is realistic or not, it will be a drastic move to abolish GST as it was never done before,” he told reporters after the panel discussion of Bank Negara Malaysia Governor’s address on the Malaysian economy.
He said that it is worrying if the three impacts have to be done in order to ensure the country’s revenue will not be affected.
“Indeed, GST was only implemented three years ago in Malaysia, but it provides a source of income to this country,” he said.
