KUALA LUMPUR: There are many ways to boost the country’s revenue even as the government’s expenses have risen to soften the effects of Covid-19 on the economy.

       The World Bank panel said that the raising of the country’s revenue can be done through many ways and it does not necessarily have to entail imposing new types of taxes on the population at this point in time.

       “But the broader point still remains that Malaysia does under collect across a broad range of taxes on personal and consumption.

       “The country also needs to diversify its revenue base. On the goods and services tax, I will not wade into (it) as I don’t have enough specifics,” World Bank Group’s lead economist Apurva Sanghi said at the World Bank’s Malaysia economic briefing yesterday.

       “A big chunk or up to 20% of the country’s revenue come from petroleum-based industries. Malaysia really needs to up its game on revenue mobilisation including on tax administration and compliance,” Apurva added.

       His views were similarly shared by senior economist at the World Bank, Shakira Teh Sharifuddin, who pointed out that there is a need to raise revenue collection and diversify the country’s revenue base.

       “What we have emphasised in the past is that there is a severe under collection in consumption taxes. Malaysia only collects about 2%-3% of the GDP from consumption taxes and this is definitely much lower than what other upper-middle and high-income countries collect,” Shakira said.

       “Some of the measures we have suggested to the government is to look at some of the exemptions in the consumption tax framework, for example.”