The Malaysian government is focusing on the Sales and Service Tax (SST) rather than reintroducing the Goods and Services Tax (GST) to stabilize the economy and meet fiscal deficit targets by 2028, according to the Finance Minister. He emphasized the need to balance economic growth with societal well-being, stating that while GST is a stronger tax system, it could negatively impact the economy compared to a more progressive SST. The government plans to expand SST tax relief to boost revenue without adversely affecting economic conditions, particularly in sectors like logistics.
Malaysian Government prioritizing SST over the reintroduction of GST
Public
Other countries
Author: Ivana Picajkić
Category:
Fiscal subject related
Views:
320
Content accuracy validation date:
28.11.2024
Content accuracy validation time:
08:03h
The Malaysian government is prioritizing the Sales and Service Tax (SST) over the reintroduction of the Goods and Services Tax (GST) to stabilize the economy and achieve fiscal deficit targets by 2028, according to the Finance Minister. He emphasized that implementing GST would take 14 to 18 months, delaying additional revenue during that period, which is not ideal for immediate economic needs.
The Minister highlighted the importance of balancing economic growth with societal well-being. Although GST is considered a stronger tax system, he noted that its implementation could have negative effects compared to a more progressive SST approach. The government aims to expand SST tax relief to increase revenue without distorting economic impacts, especially in sectors like logistics, where tax relief measures are in place to mitigate inflation.
The Minister reaffirmed the commitment to achieving fiscal responsibility goals by 2028 while maintaining practical solutions for current economic challenges. Overall, the focus remains on extending SST rather than introducing GST at this time.
Other news from Other countries
The Philippines Implement VAT on Foreign Digital Services
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
The Philippine BIR has issued Circular No. 47-2025, detailing VAT rules for foreign digital service providers starting 1 June 2025. Registration is required only if annual sales exceed PHP 3 million, and no local tax representative is needed. The simplified process supports fair competition and reduces compliance burdens, aligning with international digital tax practices. The Philippine Bureau of... Read more
Singapore Starts Phased Rollout of Mandatory E-Invoicing
Public
Other countries
Author: Ljubica Blagojević
Other countries
Author: Ljubica Blagojević
Singapore’s Peppol-based e-invoicing system, launched in May 2025, becomes mandatory for new GST registrants from November 2025 and fully enforced by April 2026. Businesses are urged to adopt early via InvoiceNow, IMDA’s national platform. E-invoicing providers help ensure IRAS compliance, secure document handling, and cross-border readiness. Important Components: InvoiceNow: The national e-inv... Read more
UAE to Ban Single-Use Plastics by 2026
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The UAE will ban single-use plastic products from January 1, 2026, as part of a phased strategy to combat plastic pollution. The ban builds on the 2024 ban, aiming for a future free of waste and pollution. The UAE is focusing on efficient resource use, sustainable food practices, and reducing plastic waste. Starting January 1, 2026, the UAE will prohibit the import, production, and trade of single... Read more
Chile Mandates Printed or Digital E-Tickets for All B2C Sales
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
The authority has issued exempt resolution No. 53, requiring taxpayers to deliver printed or virtual representations of e-tickets or vouchers for B2C transactions, including cash, bank transfers, debit, credit, and prepaid cards, effective May 1, 2025. The authority has released exempt resolution No. 53, which mandates the delivery of either a printed or digital copy of the e-ticket (which s... Read more
Estonia's VAT Hike: 24% Standard Rate Begins July 2025
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Estonia's standard VAT rate will rise from 22% to 24% from 1 July 2025, with reduced rates from 9% to 13% and 5% to 9%. Starting July 1st, 2025, Estonia is raising its standard VAT rate from 22% up to 24%. The lower VAT rates are going up too, moving from 9% to 13% and from 5% to 9%. So, what do you need to do? When selling to customers in Estonia and charging them VAT, it’s a must to use... Read more
Vietnam Issued New E-Invoicing Rules
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Vietnam's Ministry of Finance has updated regulations on e-invoices, taxpayer risk assessment, and invoicing procedures for business models, effective 1 June 2025. The circular introduces new invoice types, reconciliation periods, and criteria for identifying high tax risk taxpayers. Vietnam’s Ministry of Finance issued Circular 32/2025/TT-BTC on 31 May 2025, updating guidance on invoices un... Read more
Chile: SII Mandates Third-Party Seller Reporting for Digital Marketplaces
Public
Other countries
Author: Ema Stamenković
Other countries
Author: Ema Stamenković
Chilean Tax Authority (SII) introduced new reporting obligations for digital platforms and payment providers starting October 1, 2025, with additional requirements from January 1, 2026. These rules enhance tax oversight and VAT compliance in the digital economy. The Chilean Tax Authority (SII) issued Circular 38/2025, introducing new reporting obligations for digital platforms and electronic payme... Read more