The World Bank has once again revived an old proposal to improve the country's taxation system and increase revenue collection.
In its latest report, the institution suggested that Malaysia replace SST with GST at a basic rate of 10%, which could potentially increase national revenue by 1% of GDP.
In addition, stricter collection of individual income tax (PIT) could further increase national revenue without burdening the people as a whole.
However, the World Bank stressed that any tax increase would indirectly affect the low-income group.
Therefore, the report has outlined several strategies, including proposing strategies such as GST rebates and targeted social assistance to reduce the burden on the people.
Other proposed fiscal reforms, including the abolition of fuel subsidies and the use of tax revenue for investment in the health and education sectors, are also expected to be able to reduce economic inequality in Malaysia.
The question is, are the people really ready? Or is this just an economic experiment that ends up increasing the people's burden?
