Malaysia’s government deferred its plan to enforce a 4 per cent goods and service tax fearing that it will make it unpopular in the country. Prime Minister Najib Razak’s administration had previously planned to impose the tax by 2011 in an effort to boost revenue by about 1 billion ringgit (S$418 million) annually. It invited criticism from social activists, who insisted the tax would cause inflation to rise and unnecessarily trouble poor and middle-class earners. The government dare not press for a move like this when general elections are knocking at the doors.
TAX POLITICS
TAX POLITICS
