Unpopular tax hands fresh ammo to Malaysia PM's foes

AFP | .

An unpopular new consumption tax has handed fresh ammunition to critics of Malaysia's embattled prime minister, with angry consumers complaining it has sent some prices surging, and economists warning it could harm growth.

The government on April 1 introduced the six-percent Goods and Services Tax (GST), which taxes transactions throughout the business supply chain and replaces earlier sales and service taxes on end-consumers that ranged from 6 to 10 percent.

The government had said the more streamlined tax regime would lead to lower prices for many key items and boost government revenue in Southeast Asia's third-largest economy.

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