Asean+3 Macroeconomic Research Office said that the government’s aim to bring down the debt ratio to 55% of the gross domestic product by 2023 would be challenging to achieve under baseline assumptions.
“If the GST were to be re-introduced in mid-2022, the government debt ratio would fall sharply from 63.9% of GDP in 2021 to 56.6% by 2025 as the primary deficit would consolidate at a faster pace. Amro said that any introduction of new taxes should only be done once the economy is back on a firm footing and the Covid-19 uncertainties have dissipated.
Currently, the SST covers 38% of goods in the consumer price index basket and the number of goods exempted via SST is 10 times more than those exempted through GST.
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