KUALA LUMPUR: Malaysia is one of the lowest tax revenue collectors in Southeast Asia, with a tax-to-gross domestic product (GDP) ratio of 11.8 per cent.Malaysia University Science and Technology (MUST) economist Prof Emeritus Dr Barjoyai Bardai said Malaysia fell behind Singapore and Thailand and is struggling to catch up. Both use the goods and services (GST) and value-added (VAT) taxation system.”We are far behind due to neighbouring countries using GST. Recently, for example, Singapore has increased the tax rate, so our tax collection is even much lower.”Malaysia collected RM40 billion using the GST. Now, with the sales and services tax (SST), we collect less than RM30 billion, and the revenue from the service sector is less than half,” he told Bernama.
Reference : https://www.dailyexpress.com.my/news/228598/malaysia-s-tax-collection-among-the-lowest-in-the-region/