Anwar says Malaysia will retain SST but may study GST elements to create a more progressive tax system without burdening the rakyat
PUTRAJAYA: The government is prepared to study a proposal to combine elements of the Goods and Services Tax (GST) with the Sales and Service Tax (SST) to ensure the country’s taxation system is more progressive, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar, who is also the Finance Minister, said Malaysia would, however, retain the SST as the national taxation system, though certain acceptable features (from the GST) would be considered.
“But there is one thing I will not compromise on: I do not want a tax that broadly affects the entire population, which was the fundamental premise of the GST,” he told the media while attending the closing session of the Budget 2027 engagement session here today.
Anwar said that, fundamentally, he disagreed with the GST because it is a broad-based tax system —meaning the tax applies to all citizens.
Anwar emphasised that the GST system would affect all segments of society, including those facing economic hardship.
“When discussing the GST specifically, my concern — which I have voiced repeatedly — is that this is a tax levied on the people.
“Although some argue that this tax is (more) efficient, it is ultimately a tax on the people, meaning those who have never paid taxes before would be required to do so. How can we justify this in the current climate? Given the cost of living, it would become a burden on the rakyat,” he said.
Budget 2027, themed ‘Malaysia MADANI: Menggapai di Langit, Mengakar di Bumi,’ is scheduled to be tabled in Parliament on Oct 9.
Also present at today’s engagement session were Finance Minister II Datuk Seri Amir Hamzah Azizan, Deputy Finance Minister Liew Chin Tong, Treasury secretary-general Tan Sri Johan Mahmood Merican, Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour, secretaries-general, heads of service, senior government officials, representatives from industries, associations, and NGOs, as well as economic figures and scholars.
