The GST, a multi-stage consumption tax, was introduced in April 2015 at 6% before being zero-rated in June 2018 and replaced with the SST in September 2018. (Bernama pic)

PETALING JAYA: The Center for Market Education (CME) has proposed an overhaul of Malaysia’s tax system that would reintroduce the goods and services tax (GST), lower personal and corporate income tax rates and ease tax-related cash-flow pressures on small businesses.

The proposals are part of a policy brief by CME CEO Carmelo Ferlito, which calls for a revenue-neutral restructuring of the tax system by shifting part of the tax burden from income and corporate profits towards consumption.

The think tank said the proposed changes should be implemented alongside expenditure reforms and subsidy rationalisation, with lower income tax rates phased in as additional revenue becomes available.