Summary
- Government rules out GST return amid rising living costs.
- SST revenue projected to reach RM73.3 billion in 2027.
- Finance Ministry plans further improvements to SST system.
KUALA LUMPUR, October 30 — Malaysia will retain the Sales and Service Tax (SST) instead of reintroducing the Goods and Services Tax (GST), citing concerns over household living costs.
Finance Minister II Amir Hamzah Azizan said GST could disproportionately affect lower-income households, while SST allows targeted exemptions for essential goods.
SST collections are projected to rise from RM55.9 billion in 2025 to RM73.3 billion in 2027. Amir Hamzah said the government would continue improving SST compliance and efficiency.
Noting that reintroducing GST would increase administrative costs for businesses without necessarily generating additional revenue.
