The Goods and Services Tax (GST) will be zero-rated for all items and services in Malaysia from 1st June 2018, the Finance Ministry announced today. The ministry’s announcement comes just a week after Pakatan Harapan (PH) took over the federal government in the historic general election.
PH had promised that it would abolish the GST within 100 days of forming the new government in their manifesto and they certainly kept their word.
In a statement, the Ministry said that the reduction of the rate from the current 6% to 0% will be implemented nationwide until a further announcement is made. Zero rating would essentially remove the price impact of the GST, but retain its tax reporting functions.
This decision does not include goods and services listed in the Goods and Services Tax (Exempt Supply) Order 2014, which remains exempted from GST.
“As such, all registered traders must follow the decision of the zero rate now. At the same time, registered businesses are still subjected to all current regulations,” said the Ministry.
Well, there you have it, straight from the horse’s mouth. Now finally we can go back to complaining about restaurants that don’t serve us free drinking water… ahh, simpler times…
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