THE goods and services tax (GST) will be improved in terms of the efficiency of its business compliance level, reimbursement process and overall administration if reintroduced by the government.

Finance Minister Tengku Zafrul Abdul Aziz said it will also be updated to prevent confusion in the classification of taxable versus non-taxable goods.

“Any new taxation system needs to be approved by parliament.

“If we take into consideration improvements to the existing system and the requirement for public engagement, it is doubtful that the GST can be re-implemented this year.”

Tengku Zafrul said national revenue collection as a percentage of GDP was low last year, at 15.1%, compared with other countries in the region.

Tax revenue, meanwhile, stood at 11.2% of GDP, he added.

Hence, he said, the government needs to broaden its revenue base to distribute it in a more meaningful manner that will benefit Keluarga Malaysia.

“Before it introduces any new tax, the government must ensure the post-Covid-19 economic recovery is on a stable and solid track.”

On Budget 2023, Tengku Zafrul said it will focus on facilitating full employment and re-employment, as well as social protection for self-employed individuals and those working in the informal sector.

It will also focus on employment and re-employment of unemployed graduates, women who left the labour force and persons with disabilities.

“Interventions are also required to ensure basic food security and government resources are spent on those who need them through targeted subsidies.” – Bernama, June 10, 2022.