Govt has not discussed bringing back GST: Tengku Zafrul

KUALA SELANGOR – There have not been discussions on reintroducing the goods and services tax (GST) in cabinet meetings, said caretaker finance minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz.

He said the implementation of GST requires discussion at the cabinet level and tabling in Parliament first.

“... and before the dissolution of Parliament, there was no cabinet approval regarding GST,” he told reporters after officiating the Kuala Selangor Kemas Family Day, here today.

Tengku Zafrul said this in response to claims by Pakatan Harapan leaders that GST will be reintroduced after the coming general election.

Elaborating, he said at least 160 countries in the world have implemented GST and admitted that the tax system is more efficient and able to reduce leakage.

“Our current tax to gross domestic product ratio is around 11%, which is relatively low. This shows that what we have now is not efficient.

“(However,) this does not mean that we will introduce a new tax in the near future. What is important is that the tax imposed does not burden the people and can be used to develop the country,” he said.

The GST of 6% was introduced on April 1, 2015, before it was abolished and replaced with the sales and services tax starting September 1, 2018.

The current sales tax rates are 5% and 10%, while the service tax rate is 6%. – Bernama, October 27, 2022