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Malaysia Must Rethink Consumption Tax Reform Beyond GST Versus SST

  • Anwar has reopened the GST debate by saying the government may study some GST features for the current SST system, but not fully reintroduce GST.
  • Malaysia needs a more effective revenue-raising tax system, but any reform must avoid worsening cost-of-living pressures.
  • The main issue is fairness and public trust, not just whether the system is GST or SST; both have strengths and weaknesses.
  • If GST elements are added, the government must clearly explain which ones, why they are needed, and how low-income households will be protected.
  • Because an election is approaching, any tax reform will be judged politically, especially given memories of GST’s 2018 backlash.

Source: sinardaily.my

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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