GST helps country achieve surplus budget by 2020: TAMS

KUALA LUMPUR, July 10 (Bernama) -- The Goods and Services Tax (GST) will help Malaysia achieve a surplus budget by 2020, the year Malaysia is projected to become a developed nation.

Executive Director, Tax Advisory And Management Services Sdn Bhd (TAMS) Yong Poh Chye said the government can collect RM23.1 billion in tax revenue next year and that is only from three quarters, as the GST will only be implemented on April 1, 2015.

"In 2016, GST revenue of RM32 billion is expected," he added. Yong was the speaker at the session on "Introduction and Basics of GST - Preparing your Company for GST Implementation" at the National GST Conference 2014 here today.

It was moderated by Acting Deputy Editor-in-Chief, Bernama Economic Service, Mikhail Raj Abdullah.

Prime Minister Datuk Seri Najib Tun Razak, who is also the Finance Minister, announced during the tabling of the Budget 2014 that the government would broaden its tax base and diversify revenue streams by implementing the GST to replace the 10 per cent Sales and Services Tax (SST).

"If the SST can collect RM17 billion, the GST can double this in one or two year's time," Yong said.

Malaysia's fiscal deficit was at 4.5 per cent in 2012 and the Prime Minister is determined for the country to be budget neutral by 2020.

The two-day conference which ends Friday, is jointly organised by Malaysia News Agency (Bernama) and TAMS.