Summary
- The government will retain the Sales and Service Tax rather than replace it with GST.
- Selected GST features will be incorporated to reduce cascading and double taxation for businesses.
- Malaysia collected RM129.6 billion in taxes in the first half of 2026, up 9% year-on-year.
KUALA LUMPUR, October 8 — Malaysia will retain the SST while incorporating selected features of the GST to reduce cascading taxes, Deputy Finance Minister Liew Chin Tong told Parliament.
Liew said the government wants a system that limits burdens on consumers while preventing businesses from facing accumulated taxes through supply chains.
He said SST would remain because it is easier to understand and has operated for more than 50 years. Malaysia’s tax collection rose 9% to RM129.6 billion in the first half of 2026.
With the government targeting RM343.1 billion for the full year.
