Malaysia says sales tax would take 14 months to implement
KUALA LUMPUR (REUTERS) - Malaysia's goods and service tax (GST) will take 14 months to implement if announced in the budget in October, a ministry official said on Thursday, as the government moves to curb its stubborn fiscal deficit and high debt burden.
The GST will help Malaysia broaden its tax base and tackle a fiscal deficit that has widened to RM14.9 billion (S$5.7 billion), as well as a shrinking current account surplus which fell sharply to RM2.6 billion in the second quarter.
"If announced now it will come online in 2015," said the finance ministry's secretary general Mohd Irwan Serigar Abdullah.
Mr Mohd Irwan also said that Prime Minister Najib Razak will announce a decision on subsidy rationalisation soon.