GST curbs tax evasion and illegal capital outflows

GST was started on the basis of the more you spend, the more you pay. Since the rich spend a lot, they pay a large chunk of GST.

(MMO) – The controversial goods and services tax (GST) would have helped the government reel in tax dodgers and reduce the loss of capital from the country, Pekan MP Datuk Seri Najib Razak asserted today.

The former prime minister, who introduced the consumption tax in April 2015, insisted the GST was the best initiative for the country’s economy and had considered the people’s wellbeing.

“GST was started on the basis of the more you spend, the more you pay. Since the rich spend a lot, they pay a large chunk of GST.

“It also helped to reduce, and impose tax onto the black economy, reducing tax evasion and illicit capital outflow,” he said while debating the royal address in the Dewan Rakyat.