KUALA LUMPUR, Malaysia – Malaysian Prime Minister Najib Razak has announced plans to impose a 6 per cent goods and services tax by April 2015 to boost revenue and stem rising government debt.
Najib says Friday that fuel and other subsidies will also be slashed as part of fiscal reforms, while personal and income tax will be lowered to make the economy more competitive.
Najib was unveiling the 2014 federal budget in Parliament. He says the GST rate will be among the lowest in the region and assured the public that essential food, education, housing, public transportation and healthcare would be excluded.
Najib says the economy is expected to grow between 5 and 5.5 per cent in 2014, up from 4.5-5 per cent this year.