TAX REFORM AND INFLATIONARY EPISODE
The COVID-19 pandemic crisis lead to higher borrowings and fiscal deficits. To overcome the situation, new tax policies or tax reform are vital as one of the fiscal policy objectives is to reduce the budget deficits. Nevertheless, tax reforms are likely to affect the cost of production, which results in inflation, leading to the change in consumption pattern in the economy. This situation will therefore, worsen the current economic situation. Thus, this book in a nutshell, looks into the role of tax reform in influencing the societal well-being from the perspective of inflationary episode. This book used Malaysia as a case study in investigating the tax reform and inflationary episode given the relatively recent tax reform that had taken place in 2015 with the introduction of Goods and Services Tax (GST) and its subsequent abolishment in 2018. when the elected Pakatan Harapan government reverted to the Sales and Services Tax (SST) or known as SST 2.0. Hence, it is vital for the people to understand the role of tax reform in affecting the inflationary episode in Malaysia so that everyone can contribute towards minimizing its adverse impacts.
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