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The Impact Of The Goods And Services Tax (Gst) In Malaysia: Lessons From Experiences Elsewhere (A Note)

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  • SURESH NARAYANAN

    (School of Social Sciences, Universiti Sains Malaysia, 11800 USM, Penang, Malaysia)

Abstract

The recent Malaysian attempt to introduce the Goods and Services Tax (GST) was thwarted by public concerns about: (i) its impact on the price level; (ii) its regressivity; (iii) the possibility of the rate increases once the tax is in place; and finally, the disincentive large revenues from the GST would be in addressing the underlying causes of wasteful public expenditures and leakages. The experiences of countries that have implemented a similar tax are surveyed to assess these concerns. It is concluded that within the Malaysian context, all the concerns are well-founded and measures are therefore suggested to ameliorate them.

Suggested Citation

  • Suresh Narayanan, 2014. "The Impact Of The Goods And Services Tax (Gst) In Malaysia: Lessons From Experiences Elsewhere (A Note)," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 59(02), pages 1-15.
    • Handle: RePEc:wsi:serxxx:v:59:y:2014:i:02:n:s021759081450009x
    DOI: 10.1142/S021759081450009X
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    References listed on IDEAS

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    Cited by:

    1. Neba Bhalla & Rakesh Kumar Sharma & Inderjit Kaur, 2023. "Effect of Goods and Service Tax System on Business Performance of Micro, Small and Medium Enterprises," SAGE Open, , vol. 13(2), pages 21582440231, June.
    2. R, Revathi & L. M., Madhushree & Aithal, Sreeramana, 2019. "Review on Global Implications of Goods and Service Tax and its Indian Scenario," MPRA Paper 95152, University Library of Munich, Germany.
    3. Neba Bhalla & Inderjit Kaur & Rakesh Kumar Sharma, 2022. "Examining the Effect of Tax Reform Determinants, Firms’ Characteristics and Demographic Factors on the Financial Performance of Small and Micro Enterprises," Sustainability, MDPI, vol. 14(14), pages 1-18, July.

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    More about this item

    Keywords

    VAT; regressive tax; price level; consumption; permanent income; H25;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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