Unlike Singapore, Malaysia does not impose the GST or Goods and Services Tax. This however is set to change as the government of Malaysia is currently working to propose such taxes in the country. It is most likely to be implemented towards the third or fourth quarter of 2011, a move which is not going very well among Malaysians who felt that it might be burdenful.
The government is proposing to impose this tax so as to help them seek more revenue instead of its heavy dependence on the current income generators like national oil and gas company, Petronas. If the GST is imposed, the current Sales and Services Tax will be abolished respectively. For a start, the government is proposing that the GST to be set at 4%. The Goods and Services Tax Bill 2009 was first tabled in 2009 and is currently in the final stages of its completion.
To ensure that the burden of the people are not too heavy, the government has recommended that rates for other taxes like income tax be reduced. Once the GST is imposed, there will be big change in how items are purchased as there will be an additional 4% levied on every item and service.