Malaysia launches consumption tax despite public unease

Malaysia last week implemented a six percent consumption tax aimed at plugging a leaky tax-collection system and addressing a widening fiscal deficit, but which has sparked opposition protests over the past year.

The government and economists say the Goods and Services Tax (GST) will help address an inadequate revenue-collection system under which income tax is currently paid by only an estimated 11 percent of registered companies and 14.8 percent of employees.

But the GST has prompted demonstrations by opposition parties, who say consumers were being left with the bill for government mismanagement of the economy.