Analyst expects GST to bring RM690 million net revenue in 2015
The net revenue from the implementation of the Goods and Services Tax (GST) in 2015 will only add a net revenue of RM690 million to the government's coffers, Citi Research said today, according to Bernama.
Citi Research, which is a division of Citigroup Global Markets Inc, said its forecast was based on GST gross revenue of RM23.3 billion, revenue losses from the abolition of sales and services tax (SST) (RM13.8 billion), revenue losses from the expanded list of exempted goods (RM3.8 billion), and expanded assistance programmes (RM4.9 billion).
"Including last week's fuel price hike, 2015 inflation is expected to jump to 4%-5% in 2015, with private consumption expected to slow to just 5.6%.
"This should be cushioned by faster public investment and consumption, such that domestic demand is projected to slow only marginally to 6.2% from 6.5% in 2014," Bernama quoted the research firm as saying.
Citi Research added that private investments into 2016 may be further helped by a 1% cut in corporate tax and small and medium enterprise tax rates to 24 and 19%, respectively. – October 11, 2014.
