How can GST collection boost government revenue by RM1 billion?

Question

Accepted Answer

GST Collection Can Boost Government Revenue by RM1 Billion Through Increased Company Registrations

The Malaysian government aims to increase tax revenue by RM1 billion by encouraging more companies to register for the Goods and Services Tax (GST). This initiative is part of broader efforts to mitigate a projected RM8.3 billion drop in government revenue, primarily due to falling oil prices. The government plans to reduce operational expenditure by RM5.5 billion as part of these fiscal adjustments.
Encouraging GST Registration as a Revenue Strategy

The government's strategy to enhance tax collection includes a focus on increasing the number of businesses registered under the GST system. By bringing more companies into the formal tax net, the administration anticipates a significant uplift in tax revenue. This measure is designed to offset revenue shortfalls in other areas, particularly those sensitive to global commodity price fluctuations.
Addressing Projected Revenue Shortfall

The RM1 billion potential increase from GST registration is a key component of the government's response to a projected RM8.3 billion decrease in overall revenue. This shortfall is largely attributed to the decline in global oil prices, which directly impacts national income derived from petroleum exports and related sectors. The fiscal adjustments aim to maintain economic stability despite these external economic pressures.
Operational Expenditure Reductions

Alongside efforts to boost tax income, the government is implementing spending cuts. A target of RM5.5 billion has been set for reducing operational expenditure. This dual approach of increasing revenue and controlling spending is intended to ensure the nation's fiscal health and its capacity to navigate challenging global economic conditions.

Reading history

Hide →

This history is cleared when the page is closed.

How can GST collection boost government revenue by RM1 billion?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends