Former prime minister Datuk Seri Ismail Sabri Yaakob said that the goods and services tax (GST) should be reintroduced in order to increase national revenue, The Star reported. This echoes former transport minister Datuk Seri Wee Ka Siong who in September also called for GST to be reintroduced.
(We have previously written on the impact of GST on the automotive industry and on car prices, and you can also read more here on the mechanics of both taxation systems.)
The reintroduction of GST would be a better move to increasing revenue compared to retaining the current sales and service tax (SST), saying that the government’s plan to raise SST from 6% to 8% was “not the right move” as it would not generate significant revenue while burdening consumers.
“Although the SST increase does not involve the food sector, it will have a domino effect on other aspects that will influence an increase in the price of goods, as traders will not absorb the costs. It is time for the government to look at reimplementing GST,” Ismail Sabri said in debating Budget 2024.
The former prime minister said that the country lost approximately RM20 billion to RM30 billion a year due to the “black economy”, and said that increasing SST by 2% will provide just RM3 billion at best based on government estimates, he said.
From the perspective of the automotive industry, the reintroduction of GST has been suggested to reduce car prices by between one to six per cent if it is to replace SST, which is currently 10%. The 2015 implementation of GST was proven to reduce car prices by as much as 6%, the Malaysian Automotive Association (MAA) said.
As a recap, GST is a value-added tax where tax is paid at every stage of the business transaction, compared to SST which is a one-time tax paid by the manufacturer or importer. Despite that, the total amount of tax paid under GST is lower due to its input tax claim mechanism. That said, there is more at play when it comes to adjustments in car prices, as we have explored two years ago.
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Why didn’t you implement it when in power?
SST plotek kroni atoksaka PN yidin Janawibawa,
Problem last time was not GST
Is to use GST to cover his 1MDB
Now start cooking GST again
So PMX can implement 2025
This is what we call “politicking”
1mdb wak lu. Gst mansuh sbb “raykat” x bijak. Belajar tinggi2, kena tipu dgn 1 parti politik tu. Kata brg naik, cukai berganda. Tp tujuan nk bg gemok poket parti politik tu sbb dpt sumbangan politik dr towkey2
geng2 PN yidin atok. Tokey2 judi pulak tue..
Masa mansuh GST tu untuk puaskan hati golongan B40 tu, bukannya untuk yang berpelajaran.
Cuz he was battling me for leadership role. At last I won and brought my team into hell with Anwar. Hahahaha!
Good for you, but bad for PH
As above
Apa ni gaduh-gaduh. Sudah geng kan. Kenalah saling jilat menjilat antara satu sama lain
Problem is that when BN implemented it from 2013 – 2018 there are hardly any refund (and guess 1..B knows why) resulting to all suppliers increase their prices after waiting for their money for years upon years.
Also our money being wasted by the guy who treats Evian Water for meetings with our tax payers money and who forgotten the Burberry showcase where all of this are not locally made.
he also wanted to build race tracks in every state for the rempits
So you were indirectly saying GST can be good, but was possibly abused, right?
So why the current govt still insistent on not reimplementing it (and manage it better), but instead increasing the SST?
Ismail Sabri was right though. There will be domino effects by increasing the SST, without much return to the govt.
So let me say this in advance ya instead of coming back after a few months – told ya!
Yeah if it is not good why 95% of the world adopts it however does Malaysian knows how to use or implement it that’s the problem doing it 5 years also failed what else coming back again later Zzzzz better.
So you clearly agreed that it is good. And my next question (a repeated one, I know), why the current govt (who claims they know em all, claimed the GST was bad, fighting for rakyat, for country and yada yada) still insistent on not reimplementing it, but instead increasing SST (which is clearly not a smart move – eh but they claimed they are better and smarter kan?)?
Yes PH will have no choice but eventually forced to implement GST if they want to collect more tax money but if they do implement it will anger the rakyat for breaking yet another promise. So either way Pakatan Govt is finished and will never come back again.
you said that in 2019, but they won again in 2022.
Hey mail you will not get your PM title back. Stfu
Ex agro minister then so call ex pm, advising this as he himself rakyat complain always that he looks like down syndrome patient , so kindly keep it inside ur tiny brain this useless advise
those haven’t bought car during the sst exemption, will have to regret their dumb decision to vote Anwar xDD
GST akan membebankan golongan B40 miskin tegar macam kami. Makin terhimpit hidup kami. Patotnya gomen perlu terus menerus bantu kami bagi bantuan sara hidup tunai. Beri kami subsidi yang lebih banyak supaya kami dapat hidup setanding dengan golongan yang lebih bernasib baik. Jangan pinggirkan golongan miskin macam kami. Teruskan ambil cukai dari goloogan kaya dan salurkan pada kami agar kami dapat hidup senang lenang.
Dgn sst kau hidup senang lg la. Mcm ni punya otak pun ada.
Why not just have both SST and GST.
SST at 2% and GST at 1%
remove sst and gst, tax the datuks and tan sris instead
It has and always been but Malaysians have no way run away from it like SST. Also implementation was abit botched. They dont implement cause they dont wanna lose voters la those cbs
Skrg katala gst bagus. Dulu kutuk rapat. Puak2 mana lg? Smp menteri kewangan masa tu digelar menteri plg b*d*h, b*ng*k dlm sejarah sebab kutuk rapat gst sblm in-power dan mansuh masa in-power. Isu gst bkn sbb 1mdb, tp sebab towkey2 x boleh lari cukai, hidup jd papa-kedana, anak2 x boleh hantar sekolah private. Tambah perasa dgn isu 1mdb. Padahal xde kena mengena pun gst dan 1mdb. Negara lain dh xde isu sgt psl cukai tertiris, kita dah ada solution dgn gst pi kona balik dgn sst. Maka towkey2/company2 besar kekenyanganla.
Nk buat mcm mne, da rakyat benak sgt. Dlu aku kne hentam psl sokong gst ni. Now aku gelak je tgk mne yg bangang dok sokong mansuh gst dlu tu.
Msih idup lg ke da m*mp*s merempat harap bantuan gov? Sakit da gelak ni smpi nk tercirit da ni. Padan muka mansuh lg.
Bkn salah gov, salah rakyat sendiri rela kne kencing.
We can argue till the cows come home… what ever is implemented will NEVER benefit the rakyat… only the gov and the high levels in gov will ensure the politikus can pocket the money…and the high levels will also pocket some themselves!!