Brief history about GST

The concept behind GST was invented by a French tax official in the 1950s.

In some countries it is known as VAT, or Value-Added Tax. Today, more than 160 nations, including the European Union and Asian countries such as Sri Lanka, Singapore and China practice this form of taxation.

Roughly 90 percent of the world’s population live in countries with VAT or GST. Here are some of the tax rates of countries around the world who have implemented GST or VAT.


Malaysian Tax History

In Malaysia, our tax system involves several different indirect taxes:

  • Import duty

    • On goods brought into the country

  • Export duty

    • On goods produced for sale outside the country

  • Government Sales Tax

    • On a wide range of goods at the point of import or at the manufacturer’s level, with four tax rates at 5%, 10%, 20% and 25%

  • Service Tax

    • On services provided by restaurants, hotels, telecommunications services, professional services by architects, engineers, lawyers etc.

  • Excise Duty

    • On luxury and ‘sin’ products such as automobiles, liquor, beer and tobacco products

The proposed GST will replace the Government Sales Tax and the Service Tax.