Malaysia Rules Out Reinstatement of Goods and Services Tax (GST)

Prime Minister Anwar Ibrahim reaffirmed that Malaysia will retain the SST, rejecting GST reinstatement due to its burden on low-income earners despite its revenue-generating efficiency.

In August 2024, the OECD advised Malaysia to consider a phased GST comeback to stabilize the tax base, increase revenue, and reduce the cascading tax effects under SST.

GST was unpopular from 2015 to 2018 due to price hikes and complexity. It was replaced by SST, which remains preferred for its targeted nature and easier administration.