Prime Minister Anwar Ibrahim said the government is prepared to explore incorporating elements of the goods and services tax (GST) into the existing sales and service tax (SST) system.
Anwar, who is also finance minister, said the government was not planning to reintroduce GST or impose any broad-based tax that could burden the people.
He said his moral conscience did not allow him to support a taxation system in which everyone, including the poorest, would have to pay, even if the amount was small.
“That principle, to my moral conscience, I have some problem with. It’s not popular to many, but that’s a fact.
“How can I suggest a taxation system where everyone has to pay, even though in a small amount?
“But does this mean we should only depend on SST like now? No, we don’t, because it also has its weaknesses.
“So, how can we combine these two systems, find a new way to a more progressive and efficient taxation system?” he said in his speech at a Budget 2027 Engagement Session held at the Finance Ministry in Putrajaya earlier today.
Anwar said he had instructed Second Finance Minister Amir Hamzah Azizan and Treasury secretary-general Johan Mahmood Merican to explore ways of integrating elements of GST into SST.
Speaking to reporters after the event, Anwar said the government was open to studying ways to improve Malaysia’s tax system.
“While some say GST is more efficient, it does mean that certain people who haven’t been paying taxes would have to do so. Given the rise in the cost of living, that would burden the people.
“That’s why we can use SST as a baseline; if there are several adjustments that need to be made, we can make them,” he was quoted as saying by Free Malaysia Today. - Mkini
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