Malaysia to introduce sales and service tax after effectively scrapping GST

Malaysia’s finance ministry said the shortfall in revenue will be supported by specific revenue and expenditure measures that will be announced soon, including the reintroduction of the sales and service tax. (Reuters)
Updated 17 May 2018
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Malaysia to introduce sales and service tax after effectively scrapping GST

KUALA LUMPUR: Malaysia said it will introduce a sales and service tax (SST) to partly offset the shortfall in revenue from effectively scrapping a goods and service tax (GST) from June.
The Mahathir Mohamad-led government, which won last week’s general election, said on Wednesday it would lower GST to zero percent from June 1. Ousted leader Najib Razak had introduced the tax in 2015 amid lower oil prices.
In a statement on Thursday, the ministry of finance said the shortfall in revenue will be supported by specific revenue and expenditure measures that will be announced soon, including the reintroduction of the SST.
“Fiscal reform is being implemented. Expenditure reduction will begin with rationalization and efficiency measures and reducing leakages,” the statement said.
It did not say when the sales tax will be introduced.
Brian Tan, a Singapore-based economist with Nomura, said the timing of SST implementation was a concern.
“It is a question of how quickly you can bring (the SST) back. In the intervening period of the removal of GST and the return of SST, there is obviously going to be a gap in revenue. The question is how long and large will that gap be,” he said.
The finance ministry statement also added that rising oil prices will provide short-term fiscal space.
“No doubt (the higher oil price) is helpful but the problem is that it may not be enough. It is important that they bring in the SST soon,” Tan said.


Iraq’s Basra Oil, Chevron agree to implement MOU to develop oil fields

Updated 19 August 2018
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Iraq’s Basra Oil, Chevron agree to implement MOU to develop oil fields

  • Executives from the two companies have signed an agreement which outlines a program to develop the fields
  • The MOU provides for Chevron to conduct surveys and studies on oil sites and installations

DUBAI: Iraq’s state-run Basra Oil Company and Chevron agreed to begin implementing a memorandum of understanding to develop fields in the south of the country, the Iraqi oil ministry said on Sunday.
Executives from the two companies have signed an agreement which outlines a program to develop the fields, which includes studies to survey the reservoirs and extraction operations, said a statement posted on the oil ministry’s website.
Iraqi Oil Minister Jabar Al-Luaibi announced in June that Basra Oil and another state-run company, Dhi Qar Oil, signed an MOU with Chevron.
The MOU provides for Chevron to conduct surveys and studies on oil sites and installations and help the two Iraqi companies to improve their technical, administrative and financial performance.