Latest news with #GST
The Hindu
32 minutes ago
- Business
- The Hindu
Kerala's internal revenue generation tipped to cross ₹1 lakh crore in 2025-26, says Finance Minister
Kerala's own revenue is projected to cross the ₹ 1 lakh crore-mark in 2025-26, signalling that State finances will continue in recovery mode despite severe challenges on the fiscal front, Finance Minister K.N. Balagopal has said. Mr. Balagopal said the Finance department expected internal revenue generation, from both own tax and non-tax sources, to touch ₹1.05 lakh crore in the current fiscal. The estimated growth, he said, was the outcome of improved efficiency in tax collection enabled by a comprehensive overhaul of the Taxes department in the Goods and Services Tax (GST) regime. Under the present Communist Party of India (Marxist)-led Left Democratic Front government, the State's own tax revenues (SOTR) had steadily improved from ₹47,661 crore in 2020-21 to ₹76,656 crore in 2024-25. Non-tax revenues grew from ₹7,327 crore to ₹16,568 crore during the same period. The government, Mr. Balagopal said, had succeeded in pulling up the State from a Central policies-induced 'nosedive' to a position where it was equipped for 'take-off' to the next phase. 'We have achieved this in a situation where Kerala was deprived of about ₹50,000 crore annually due to the shrinkage of borrowing space and discontinuation of the revenue deficit grant and GST compensation,' he said. Mr. Balagopal said there was continued scope for finetuning tax collection. On the Integrated GST (IGST) front, systemic issues in the mechanism of its settlement with all States had deprived Kerala of ₹956.16 crore. Kerala had taken up the matter with the Centre, Mr. Balagopal said. Mr. Balagopal said the State expected to allocate ₹600 crore this year towards the Guarantee Redemption Fund (GDR). The GDR was meant to cover government guarantees offered for loans availed by public sector entities and cooperatives. According to Kerala, the Centre had reduced the State's borrowing limit by a further ₹3,300 this year citing the GDR as a requirement. Mr. Balagopal also swept aside reports that the State's debt would touch ₹6 lakh crore this year-end. It would increase to about ₹4.7 lakh crore, but the State had been able to reverse the previous trend where debt doubled every five years. As part of the drive against tax evasion, the State GST department was planning action against traders/businesses who evaded taxation by deploying street vendors to sell their products, the Minister said. 'Such practices take unfair advantage of the benefits enjoyed by genuine street vendors,' he said. In May, the SGST department had busted an organised racket engaged in the manufacture and sale of spurious diesel, he said.
Malaysiakini
4 hours ago
- Business
- Malaysiakini
Rankings speak louder than false narratives, PKR MP shells opposition
PKR lawmaker R Yuneswaran has urged the opposition to stop peddling 'false narratives' about the goods and services tax (GST), sales and service tax (SST), and subsidy rationalisation efforts. To underscore that the Madani government is on the right track, the Segamat MP pointed to the International Institute for Management Development World Competitiveness Ranking 2025, which saw Malaysia rise 11 spots with a record high of RM378.5 billion in foreign direct investments.
Focus Malaysia
4 hours ago
- Business
- Focus Malaysia
Anwar: Time not right for GST re-implementation because rakyat's income still low
THE Goods and Services Tax (GST) is an efficient and transparent taxation system, but it is not yet suitable for re-implementation because the rakyat's income threshold is still low, said Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who is also the Finance Minister, said the government did not completely reject the proposal to re-implement the GST, but the ability of low-income people must be taken into account first because the taxation system has a comprehensive impact. 'We postponed (GST) because the income of the people was still too low. My opinion at the time was that people with an income of RM2,000 were still affected although we gave some exemptions. 'Sugar and rice are not affected, but when people buy other goods or ride the bus, indirectly GST (is imposed) meaning it is comprehensive,' he said during the Finance Ministry's monthly assembly on Friday (June 20). Anwar said the government believes that the re-implementation of GST should only be considered when the average income of the people has increased to a more reasonable level of at least RM4,000 a month. 'Let the people's income increase first, let's say the minimum salary is RM4,000 (a month), maybe at that time we can (implement it). 'Right now, there are people earning RM1,700 or RM2,000… Maybe I was not wise in making this decision, but my intention is not to introduce taxes that will have a detrimental effect on the lower-class people, that's all,' he said. Based on this view, Anwar said the government chose to implement a more targeted Sales and Service Tax (SST) from which the revenue would be used to increase allocations to key sectors of the country such as education and health. 'So this is our reason, we are taking this tax to return it to the people. The allocation for the Education Ministry from RM58 bil in 2024 has increased to RM64 bil this year. 'Similarly, for the Health Ministry, RM41 bil last year, we are adding RM4 bil a year (making it) RM45 bil,' he said, stressing that the government's priority now is to strengthen critical sectors and ensure transparent and effective management. Anwar stressed that any national fiscal policy decisions, including tax implementation, must be viewed from a macro perspective and not just short-term effects. At the same time, he acknowledged the government's weakness in terms of policy communication to the people, thus he called on all parties to provide more active explanations about the policies implemented to avoid confusion and baseless accusations. 'I hope my friends (in the government) will please explain. Sometimes we are defensive, we just let people attack and we don't respond… Indeed, our weakness is also in explaining (policies) because we assume everyone understands,' he said. GST was first introduced in Malaysia on April 1, 2015 as part of fiscal reforms to replace SST with an initial rate of 6 per cent imposed across the board on almost all goods and services except those exempted. However, GST has received widespread criticism from various sections of society for allegedly burdening consumers, especially the low-income group. The tax system was officially abolished on Sept 1, 2018 and replaced with SST. On June 9, the government announced that it would implement a targeted review of the Sales Tax rate and expansion of the scope of the Service Tax effective July 1 in line with strengthening the country's fiscal position by increasing revenue and broadening the tax base without burdening the people the most. The Sales Tax rate remains unchanged for essential goods while a rate of either five or 10% will be imposed on non-essential or discretionary goods. ‒ June 20, 2025 Main image: Reuters/Liesa Johannssen
Business Recorder
6 hours ago
- Business
- Business Recorder
Taxing solar panels to backfire as Pakistan needs time to bolster manufacturing: Experts
Energy experts believe that the imposition of General Sales Tax (GST) on the import of solar panels, regardless of the final tax rate decided by the federal government, will not slow down Pakistan's accelerating transition to renewable energy. Moreover, contrary to the government's assumption that the imposition of GST would promote domestic industry, experts argue that the move would backfire as the local industry remains underdeveloped and is presently unable to meet the market demand. The remarks were made by clean energy experts, industrialists, climate activists, and renewable energy traders during a webinar titled 'Taxing the Sun: Will Solar Still Shine in Pakistan?', jointly organised by Energy Update and Pakistan Solar Association (PSA). During the webinar, participants examined the federal government's recent budgetary proposal to impose GST on solar panels. The government in its federal budget proposed to impose an 18% GST on solar panels imported. This sparked considerable debate; however, after consultations, the government decided to lower the rate to 10%. Waqas Moosa, PSA Chairman, highlighted that the decade from 2020 to 2030 has been globally recognised as a pivotal era for transitioning to clean energy. He indicated that Pakistani consumers would persist in embracing solar energy to power their homes and businesses, regardless of the added cost from GST. Moosa, however, cautioned that Pakistan's local industry is not yet sufficiently developed to meet the growing demand for advanced solar panels in adequate quantity. 'As such, relying solely on local production at this stage could risk stalling progress.' Moosa strongly criticised the proposal to tax imported solar panels, calling it a serious setback to Pakistan's efforts in combating the climate crisis. 'Whether or not a tax is implemented', he said, 'Domestic consumers will continue shifting to solar energy due to persistent power shortages and unaffordable electricity tariffs from the national grid.' Muhammad Zakar Ali, CEO of Inverex Solar Energy, also echoed similar sentiments. He said that the vast majority of electricity users in Pakistan will continue to transition away from grid-supplied electricity, regardless of tax implications. Ali argued that Pakistan needs a minimum of 18-24 months to establish a viable local industry capable of producing clean energy equipment at scale. Imposing a tax prematurely could deter both domestic and international investors, he warned. He further noted that high electricity tariffs for industrial users could discourage investment in solar panel manufacturing plants. Ali, however, remained optimistic that prospective Chinese investors would soon launch joint ventures with Pakistani industrialists to set up such facilities. The Inverex CEO explained that establishing local solar panel manufacturing plants could lead to the development of five supporting vendor industries, significantly boosting the clean energy supply chain in Pakistan. Pakistan's solar surge lifts it into rarefied 25% club Dr Khalid Waleed, Research Associate at the Sustainable Development Policy Institute (SDPI), believed that the surge in rooftop solar installations in urban centres presents an opportunity for Pakistan to earn carbon credits on the global climate finance market. During the webinar, Tanveer Barry, Former Vice President Karachi Chamber of Commerce and Industry (KCCI), pointed out that while Pakistan's installed electricity generation capacity exceeds 45,000 megawatts (MW), only around 27,000 MW are currently deliverable to end-users due to outdated and overburdened transmission infrastructure. Barry also highlighted the immense untapped potential for solar energy adoption among off-grid rural households and agricultural communities across the country.
Web Release
7 hours ago
- Automotive
- Web Release
Nissan to Livestream World Premiere of All-New Patrol NISMO From the Middle East
Nissan to Livestream World Premiere of All-New Patrol NISMO From the Middle East Dubai, UAE (20 June 2025) – Nissan is set to strengthen its performance-focused lineup in the Middle East with the highly anticipated NISMO event, taking place in Dubai on 24 June 2025. Customers, media, influencers and automotive enthusiasts are invited to join the live global streaming of the event: unveiling the all-new Patrol NISMO – marking its world premiere, and the new Nissan Z NISMO – making its regional debut. · Date: Tuesday, 24th June 2025 · Time: 7:30PM GST (GMT +4) · Worldwide Livestream Link on YouTube: The livestream will showcase Nissan's latest NISMO icons in the Middle East, spearheading the Red Ring Society and offering viewers a first look at Nissan's next generation of bold design and motorsport-inspired innovation. Don't miss out this exclusive opportunity to celebrate the passion and precision of NISMO.
