Insta
India’s GST Model Gets Vindicated As Malaysia Scraps Failed Single Rate Tax
Protesters hold anti-GST placards in Kuala Lumpur (Mohd Rafsan/AFP via Getty Images)
Three years after it rolled out the Goods and Services Tax (GST), Malaysia yesterday (16 May) decided to scrap the tax, reports Business Standard. India had studied Malaysia’s implementation and had borrowed the concept of an anti-profiteering clause to ensure that tax benefits are passed on to the end-user.
While the decision in Malaysia won’t have an impact on India, experts have asked the government to tread with caution over the next few years and study the three-year implementation to expand the GST reforms here.
Scrapping GST was a poll promise of Prime Minister Mahathir Bin Mohamad who won the elections a week ago. The 6 per cent GST rate will be scrapped from 1 June.
GST was introduced in India last July, replacing a combined total of 17 Central and state taxes. It’s rollout was followed by several hitches, mostly due to technical difficulties in the system’s digital side.
Malaysia was the most recent country to introduce GST prior to India. However, experts feel that India’s implementation would ensure that it wouldn’t meet the same fate.
GST in India is collected at five different rates – 0 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
