KUALA LUMPUR – The government will not consider the basic principle of the Goods and Services Tax (GST) as a broad-based tax and is prepared to make adjustments to improve the implementation of the Sales and Service Tax (SST), said Prime Minister, Datuk Seri Anwar Ibrahim.
Anwar, who is also Finance Minister, said the government may consider certain components of the GST, but stressed that the core principle of the Madani Government is not to increase the tax burden on the poorest segments of the population.
“I am not prepared to consider the basis of the GST because it is still a broad-based tax. The tax would be imposed on everyone, including the poorest. Therefore, the government’s core principle must be upheld,” Bernama reported.
He said this after officiating the TikTok Shop Summit 2026 here today.
Anwar, had previously announced that the government was considering reforming the consumption tax regime to make it more progressive and efficient, including the possibility of reintroducing aspects of the GST.
The issue has been widely debated, with various proposals put forward, including imposing taxes on electronic payment transactions to broaden tax revenue and reintroducing the GST to enable the government to meet its fiscal targets.
Malaysia implemented the SST after switching from the GST in 2018 following opposition to the broad-based tax amid rising living costs.
Meanwhile, Anwar said the core principle of the Madani Government is not to increase taxes on the poorest groups.
“Whether we need to make certain adjustments to improve the implementation of the SST or use certain components of the GST, of course, we can do so.
“However, the core principle of the Madani Government is not to increase taxes on the poorest groups. Therefore, the basic principle of the GST cannot be considered,” he said. - August 20, 2026
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