Room to reduce GST if oil price rises above US$55

  • Jun 21, 2016

Room to reduce GST if oil price rises above US$55

Friday, 10 June 2016 – PETALING JAYA: The Government will have room to reduce the goods and services tax (GST) rate by more than 1% should oil prices climb above US$55 per barrel, according to MIDF Research.

In a report, it said that its estimation showed that if oil prices averaged at US$55 per barrel in 2017, the Government could reduce the GST rate to 5% from 6% .

“At US$75 per barrel, another 1% could be shelved while maintaining the current fiscal consolidation target. The Government has made its intention clear that the GST implementation last year was to broaden its tax base and continue with its fiscal consolidation plan.

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