In a post COVID-19 environment, GST reform has returned to the fore as a means through which to achieve economic growth – generate revenue to support ongoing government expenditure.
Whether it’s broadening the base to remove exemptions or increasing the rate, GST reform has been a politically sensitive topic for years.
However, given the pandemic induced deficit and long-term economic impacts, GST reform may well have a central role to play in providing sustainable revenue growth and productivity gains through the abolition of less efficient taxes.