KUALA LUMPUR — The Organisation for Economic Co-operation and Development (OECD) has urged Malaysia to reintroduce the Goods and Services Tax (GST) while gradually phasing out fuel subsidies, saying the measures are needed to strengthen the country’s finances as it edges closer to high-income status.

In its latest Economic Survey of Malaysia released today, the Paris-based organisation said mounting spending needs for social protection, education and an ageing population would require a stronger and broader tax base.

It recommended the government mobilise additional revenue by reintroducing the GST, broadening the personal income tax base and strengthening tax administration, while cushioning lower-income households through targeted cash transfers.

It recommended the government mobilise additional revenue by reintroducing the GST, broadening the personal income tax base and strengthening tax administration, while cushioning lower-income households through targeted cash transfers.

The survey was presented by Dr Luiz de Mello, director of the OECD’s Country Studies Branch in the Economics Department, at its launch in Kuala Lumpur today.