Economics
Malaysia Scraps 6% Consumption Tax to Meet Election Pledge
- GST rate set at zero percent from June, Finance Ministry says
- Credit-rating companies have warned of wider budget deficits
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Malaysia scrapped a 6 percent rate on the goods-and-services tax, fulfilling a campaign promise by Prime Minister Mahathir Mohamad that gave him an unexpected win in last week’s election.
The tax rate will be set at zero percent from June 1, the Ministry of Finance said in an emailed statement. All businesses must comply with the ruling, it said.