GST expected to help offset petroleum revenue woes

The tax revenue from the Goods and Services Tax (GST) implemented in April is expected to contribute RM27 billion for the full year of 2015.

This is a 19 percent increase for the original projected revenue of RM21.7 billion after being revised.

This is largely due to improved adherence amongst companies towards the new tax regime.

For 2016, collection from GST estimate to reach RM39 billion, contributing 17.3 percent of the federal government's revenue.

The increase is a welcome enabler for the government to diversify it's source of revenue in a bid to reduce dependence on oil and gas revenues.

For the full year of 2015, oil and gas related revenues is expected to reach 3.8 percent of the national revenue compared to 6.9 percent last year.

While GST is expected to be a key driver to indirect tax with a total of RM53.3 billion.