A Tax Holiday Gives Malaysians Reasons Not to Fear Inflation
- Mahathir scrapped 6% goods-and-services tax effective in June
- Majority of economists predict no more rate hikes this year
Photographer: Nicky Loh/Bloomberg
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Malaysians already enjoy one of Southeast Asia’s lowest inflation rates, and with the removal of a consumption tax, consumers are getting an added boon.
A 6 percent goods-and-services tax was scrapped this month by Prime Minister Mahathir Mohamad to meet an election pledge and a replacement sales levy won’t be introduced until September. The new government is also subsidizing some domestic fuel prices for the rest of the year.