Politics · Malaysia Bureau
Malaysia exploring GST input tax credits for manufacturing, construction
The government is considering introducing Goods and Services Tax input tax credits for the manufacturing and construction sectors. However, details on the timing and venue for announcing the proposed system remain undisclosed.
LSN Malaysia ·
Malaysia's government is examining the potential introduction of GST input tax credits aimed at supporting the manufacturing and construction industries, according to an economic adviser to the Prime Minister's Office.
Nurhisham Hussein, who serves as economic adviser, indicated that the proposal is under consideration as part of the administration's efforts to bolster key economic sectors. Input tax credits under a GST framework would allow eligible businesses to offset taxes paid on inputs against their GST liabilities, potentially reducing the overall tax burden on these industries.
The manufacturing and construction sectors are significant contributors to Malaysia's economy and employment. Industry observers have long advocated for tax relief measures to enhance competitiveness and ease cash flow pressures, particularly for smaller enterprises within these segments.
While the government has signalled its intention to explore this measure, Nurhisham did not provide specifics regarding the timeline for implementation or the location where comprehensive details of the proposed system will be disclosed. Business groups and industry representatives are expected to await further official announcements for clarification on the scope and mechanics of any potential GST input credit scheme.
The proposal comes as the government continues to evaluate fiscal policies aimed at supporting economic growth across key sectors.