KUALA LUMPUR, December 10 — Malaysia will retain its current Sales and Services Tax (SST) framework while pursuing targeted reforms to enhance efficiency, with Deputy Finance Minister Lim Hui Ying affirming there are no immediate plans to reinstate the Goods and Services Tax (GST).
She said SST remains a more targeted and familiar consumption tax that spares essential goods and services, adding that reintroducing GST would be burdensome for households amid low incomes and would require up to two years of preparation for businesses.
Lim stressed that the government’s decision reflects a careful assessment of economic conditions, fiscal needs, and living standards as it seeks to strengthen the nation’s tax system without imposing undue strain on the public.
