Should GST make swift return?

One of the ways the Government could increase its coffers is by reintroducing the much-debated Goods and Services Tax (GST), albeit at a lower rate.

Fellow at IDEAS, Tricia Yeoh said the current Government has to frame it in a way that could be accepted by the people.

"I think if the Government is able to frame it in a way (to the people) that actually talks about increasing Government's coffers," said Tricia, referring to some of the ways for the Government to convince the people on the possibility of introducing the tax.

"Besides, economists also said that GST is a lot more broad based on consumption tax," added Tricia during a phone interview on Consider This on Tuesday.

GST, originally enforced on April 1, 2015 at a rate of 6 per cent, was replaced by the Sales and Services Tax on September 1, 2018.

Abolishing GST was one of the main promises underlined in the manifesto of the Pakatan Harapan coalition during the 2018 General Election.

Last year, the Malaysian Institute of Economic Research has urged the government to reinstate GST in the 2020 budget at a lower rate of 3 per cent.

Its chairman Kamal Salih had said SST is not enough to fill the income produced by GST, which had kept the government afloat especially when the price of crude oil plunged to below US$36 per barrel in 2015.