Goods and Services Tax is better than Sales and Services Tax: World Bank
Published on: Tuesday, June 14, 2022
By: Bernama
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Apurva (pic) said the GST is not without its shortcomings, one of which is that the lower-income households consume more than the regular households which would affect them if a regressive tax system based on consumption like GST were implemented.
Kota Kinabalu: The Goods and Services Tax (GST) is better than the Sales and Services Tax (SST) because the GST widens a country’s tax base and brings in more revenue, said the World Bank Group lead economist Dr Apurva Sanghi.More than 170 countries around the world have adopted some kind of value-added tax (VAT) or GST system, and that is one reason why the GST is more efficient than the SST, he said.
“GST is a regressive system because it is based on a tax on consumption and 60 per cent of the economy depends on consumption.
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