Malaysia GST rate favourable versus Asia Pacific, OECD countries

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KUALA LUMPUR (Oct 20): The goods and services tax (GST) tax rate of 6% in Malaysia is favourable compared to the average rates in the Asia Pacific region as well as countries of the Organisation for Economic Co-operation and Development (OECD), says tax consulting firm KPMG Tax Services Sdn Bhd.

"The average GST rate in the OECD countries is 19%, and in the Asia Pacific region it is 12.5%. In comparison, the Malaysian GST rate is favourable," said KPMG Asia Pacific Head of Indirect Taxes Lachlan Wolfers at the KPMG Malaysia Tax Summit press conference today.

On whether the GST rate may go up, KPMG Tax Services Executive Director Bob Kee said there is a possibility the rate may go up within the next three to five years, but in tandem with further cuts in corporate and personal income taxes.