KUCHING: Any move to reintroduce the Goods and Services Tax (GST) will only succeed if the government gets both the timing and the narrative right, said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.
He said the ongoing debate over GST highlights how closely economics and politics are intertwined.
“GST and the current discussion on how to bring it back should have been a learning point for Malaysians on how such narratives play out,” he said.
While he did not spell out a specific strategy, Afzanizam said the country appears to be working towards having GST back, pointing to initiatives such as e-invoicing as part of that broader direction.
He stressed that politics is unavoidable in economic policymaking and that the government must be realistic about its current position.
“There were no tax measures in the budget while the administration is in the middle of its tenure,” he said.
On that basis, Afzanizam said it is unlikely that GST will be reintroduced within the current term.
“The point here is the government needs to be mindful about the timing.
“And as I said, if there is no clear narrative, clear indication, clear guidance, then it could backfire,” he said, adding that his sense is the approach will be gradual.
