Many countries have established a Goods and Services Tax, or GST. In Australia, the GST was introduced in 2000 and replaced the Federal wholesale tax. In New Zealand, the GST was established in 1986.
In Canada, the GST replaced a hidden Manufacturers' Sales Tax in 1991. Prime Minister Najib Razak recently announced an effective date of April 1, 2015 for GST in Malaysia. GST was implemented in Singapore in 1994. Some of the benefits of the Goods and Services Tax are eliminating potential multiple taxation, encouraging economic growth, reducing red tape and bureaucracy and providing a more consistent and transparent way of revenue collection.