Anwar rules out GST return for now, remains open to SST changes
The prime minister said higher incomes would be needed before GST could be considered, citing RM4,000 as an example of a minimum income.
Malaysia will retain the sales and services tax (SST), with the government willing to consider changes to address its weaknesses rather than restore the goods and services tax (GST), Prime Minister Datuk Seri Anwar Ibrahim told the Dewan Rakyat on Nov 12.
Anwar, who also holds the finance portfolio, said opposition to reinstating GST reflected concerns about household finances, not political considerations. He argued that a broad-based tax could add to living costs while incomes remained low, particularly for lower-income households.
Responding to Datuk Seri Dr Ronald Kiandee (PN-Beluran), he said possible SST changes included tackling double taxation concerns raised by businesses. Anwar described SST as focused more on businesses, while acknowledging that consumers could still bear part of the burden.
He said GST could be considered only once incomes were higher, giving a minimum income of RM4,000 as an example. He also said some business groups had resisted government efforts to increase the minimum wage.
According to Anwar, representatives of large businesses had advocated bringing back GST during earlier Budget dialogues. His concern was that businesses would pass the tax burden to consumers.
In a separate reply to Datuk Awang Hashim (PN-Pendang), Anwar acknowledged shortcomings in SST, including the possibility of traders exploiting it to increase prices. He said monitoring was necessary to protect consumers, and that enforcement and oversight weaknesses also weighed against restoring GST.
