Many countries have successfully adopted GST as part of their fiscal strategy, including our neighbours Singapore, Thailand and Indonesia. And over the years, the scheme has proved to be a good tool to strengthen government finances. Presently, the Government has a narrow revenue base that is dependent mostly on direct taxes on income and contributions from oil-related sources.
As things stand, if you want our salaries to rise, it is also important to remove stupid prohibitive taxes on certain consumption items such as cars. Any hike in salary will only be meaningful if we do not end up having to pay for the prohibitive "taxes" on cars. Technically speaking we are putting money into Proton's and Perodua's coffers - the government should really distribute free Proton and Perodua shares to all car buyers for the past 20 years. But I digress..
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