Summary
- Anwar Ibrahim rules out GST as Malaysia’s main tax system.
- He says a broad-based GST could burden lower-income households.
- Government is studying a possible hybrid of SST and selected GST elements.
- Finance Minister II Amir Hamzah Azizan is leading the feasibility study.
- GST was abolished in 2018 and replaced by SST.
KUALA LUMPUR, August 21 — Prime Minister Anwar Ibrahim has ruled out reinstating the Goods and Services Tax as Malaysia’s primary consumption tax, citing concerns over its impact on lower-income households.
Anwar said the government could consider improvements to the existing Sales and Service Tax or adopt selected GST elements, but would not support a system that broadly increases taxes on poorer Malaysians.
The Finance Ministry is studying a possible hybrid model combining elements of both systems, led by Finance Minister II Amir Hamzah Azizan.
Malaysia introduced GST at 6% in 2015 before abolishing it in 2018 and returning to SST.
