The government is prepared to study proposals to incorporate certain elements of the Goods and Services Tax (GST) into the existing Sales and Services Tax (SST) to create a more progressive tax system, Prime Minister Datuk Seri Anwar Ibrahim said.
However, Anwar, who is also Finance Minister, stressed that SST would remain Malaysia’s tax system, with any GST features considered only if they were deemed suitable.
“But I do not want to compromise on one matter… I do not want taxes imposed on the people as a whole, as is the fundamental basis of the GST,” he told reporters after attending the closing session of the Budget 2027 engagement session in Putrajaya today.
Anwar said he remained fundamentally opposed to GST because of its broader tax base, which would affect people across all income groups, including those facing economic constraints.
“When talking about GST alone, what concerns me, and I have expressed this concern repeatedly, is that this is about taxing the people.
“Although some say this tax is more efficient, it is still a tax on the people, meaning those who have never paid tax must pay. How do we address this under current circumstances? With the cost of living, it would become a burden on the people,” he said.
The government’s willingness to examine selected GST features comes as it considers ways to strengthen the country’s tax system while addressing cost-of-living pressures.
Budget 2027, themed “Malaysia MADANI: Reaching for the Skies, Rooted in the Earth”, is scheduled to be tabled in Parliament on Oct 9.
