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M'sia govt to earn RM3 billion in first year of GST

The Malaysian government expects to earn an additional revenue of RM3 billion (S$1.17 billion) in the first year the Goods and Services Tax (GST) introduction starting April next year, Deputy Finance Minister Datuk Ahmad Maslan said.

KUCHING: The Malaysian government expects to earn an additional revenue of RM3 billion (S$1.17 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 (S$3.51 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 percent, while reducing hidden economy or incidence of tax evasion by 15 per cent, he told reporters after visiting the Kubah Ria Retail Complex in Kuching on Thursday (July 24).

As the GST could spur the export sector growth by 0.5 per cent, 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 per cent, could help Malaysia become a developed country as it abided by international standards.

Meanwhile, he announced a RM21.85 million allocation to the Sarawak Economic Development Corporation to spruce up the Kubah Ria Retail Complex and RM650,000 (S$253,600) to improve waterfront facilities at the complex.

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