FISCAL REFORM TO CONTINUE, DRAWING UP MEDIUM TERM REVENUE STRATEGY - MOF

KUALA LUMPUR, July 18 (Bernama) -- The Government will continue fiscal reform initiatives including drawing up the Medium Term Revenue Strategy (MTRS), said the Finance Ministry.

It said MTRS aims to increase revenue mobilisation and broaden the tax base by implementing new taxes such as carbon and digital taxes, improving the administration of tax legislation and revising existing tax incentives.

The MOF said the government also announced the implementation of the global minimum tax (GMT) on income exceeding €750 million starting in 2025 where a 15 per cent tax rate is more sustainable versus the current tax rate.

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"The government is expected to get additional revenue from the GMT implementation," MOF said in a written reply on the Parliament's website today in response to Datuk Seri Amirudin Shari’s (PH-Gombak) question about the government plans to increase annual revenue.

The MOF added that the government reimposed the sales and service tax in 2018 to replace the goods and services tax (GST) abolished the same year.

"Therefore, if the government intends to reimpose the GST, it will ensure that the consumption tax can be improved to ensure its progressiveness," he said.

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At the same time, the ministry said the government will continue its fiscal reform agenda by broadening the revenue base, optimising expenditure management, reducing risk exposure and improving fiscal governance.

Several initiatives will be introduced, including the subsidy rationalisation programme and its commitment to improve consumption tax and implement MTRS.

In terms of institutional reform, the drafting of the Government Procurement Act, expected to be presented to Parliament this year, will further improve public procurement governance to achieve the best value and efficiency," it added.

-- BERNAMA