The World Bank said the government could look into removing exemptions from consumption taxes on non-essential items; expanding capital gains tax; exploring other forms of progressive taxes, including wealth taxes; maximising gains from tax expenditures; and enhancing revenue administration.
KUALA LUMPUR: The World Bank has suggested the government look into a fiscal policy that strives towards raising revenue and enhancing spending efficiency.
In terms of revenue, the government may consider strategies that prioritise increasing the progressivity of the personal income tax framework, it said.
The World Bank said the government could look into removing exemptions from consumption taxes on non-essential items; expanding capital gains tax; exploring other forms of progressive taxes, including wealth taxes; maximising gains from tax expenditures; and enhancing revenue administration.
The World Bank said the effective roll out and distribution of vaccine could lead to a faster-than-expected recovery in consumer demand, greater investor confidence, and consequently a more robust recovery in domestic economic activity in 2021.
KUALA LUMPUR: The World Bank expects Malaysia’s economy to grow by 6.7% next year after a projected contraction of 5.8% this year due to the impact of the Covid-19 pandemic.
It said on Thursday the positive factors which could help underpin the recovery would be the successful containment of the third wave of the19 infections.
The World Bank said the effective roll out and distribution of vaccine could lead to a faster-than-expected recovery in consumer demand, greater investor confidence, and consequently a more robust recovery in domestic economic activity in 2021.