Reducing corporate and individual tax, only to impose GST

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The government is looking into reducing corporate and individual tax in the 2012 Budget to be tabled in Parliament on Oct 7, said Finance Deputy Minister Donald Lim Siang Chai.

He said the reduction would be possible once the goods and services tax (GST) is enforced.

More than 225 countries in the world have implemented the GST and Malaysia will have to introduce it sooner or later,” he told reporters after opening Pantech Group Holdings Bhd’s RM100 million Pantech Stainless and Alloy Industries Sdn Bhd at the Pasir Gudang Industrial Estate, yesterday.

By implementing the GST, Lim said the government hoped to reduce the country’s national deficit to between 2.8 per cent and 3 per cent by 2015 from five per cent currently.

The deputy minister also said the business fraternity and industries could expect some “goodies” as the government acknowledged the vital role played by the private sector to transform Malaysia into a high-income nation by 2020.

– Bernama