Title:Malaysia to introduce sales and service tax after effectively scrapping GST

KUALA LUMPUR: Malaysia said it will introduce a sales and service tax (SST) to partly offset the shortfall in revenue from effectively scrapping a goods and service tax (GST) from June. The Mahathir Mohamad-led government, which won last week's general election, said on Wednesday it would lower GST to zero percent from June 1. Ousted leader Najib Razak had introduced the tax in 2015 amid lower oil prices. In a statement on Thursday, the ministry of finance said the shortfall in revenue will be supported by specific revenue and expenditure measures that will be announced soon, including the reintroduction of the SST.  "Fiscal reform is being implemented. Expenditure reduction will begin with rationalization and efficiency measures and reducing leakages,"  the statement said. It did not say when the sales tax will be introduced. Brian Tan, a Singapore-based economist with Nomura, said the timing of SST implementation was a concern.  "It is a question of how quickly you can bring (the SST) back. In the intervening period of the removal of GST and the return of SST, there is obviously going to be a gap in revenue. The question is how long and large will that gap be,"  he said. The finance ministry statement also added that rising oil prices will provide short-term fiscal space.  "No doubt (the higher oil price) is helpful but the problem is that it may not be enough. It is important that they bring in the SST soon,"  Tan said.

KUALLA LUMPUR：马来西亚说，它将引入销售和服务税，以部分抵消从6月份开始实际上取消商品和服务税的收入短缺。马哈蒂尔?穆罕默德(Mahathir Mohamad)领导的政府于周三宣布，从6月1日起，GST将下调到0%，Ouste的领导人纳吉布?拉扎克(Najib Razak)在2015年开始征税，原因是油价下降。

财政部在星期四发表的一份声明中说，收入短缺将得到不久将宣布的具体收入和支出措施的支持，包括重新采用特别用途资金。声明说：“财政改革正在实施。削减开支将从合理化和效率措施入手，减少泄漏开始。“

野村证券(Nomura)驻新加坡的经济学家布赖恩?唐(Brian Tan)表示，实施SST的时机是一个令人关切的问题。在取消税收优惠和退回社会保障税之前的这段时间里，显然会存在收入差距，问题是，这一差距会持续多久？财政部长声明还说，油价上涨将为短期提供财政空间。