Government has no plans to reintroduce GST, as Malaysians still not financially ready for it – PM Anwar

Government has no plans to reintroduce GST, as Malaysians still not financially ready for it – PM Anwar

The government has reiterated that it has no plans to reintroduce the goods and services tax (GST) anytime soon. According to prime minister Datuk Seri Anwar Ibrahim, this is because the income threshold of many Malaysians remains too low, as the New Straits Times reports.

Essentially recapping what he stated last October, the PM said that while GST is an efficient and transparent tax system, it would be inappropriate to implement it now given that lower‑income groups, especially those earning around RM2,000 a month, are not yet in a position to bear the burden.

“Although some might consider it a fair approach, many low‑income earners would still be impacted despite certain exemptions. Even if we exempt essentials like rice and sugar, these same people still have to spend on other goods and services, including transportation. GST affects every part of their daily lives,” he said.

Government has no plans to reintroduce GST, as Malaysians still not financially ready for it – PM Anwar

Anwar, who is also the finance minister, said last year that the GST will only be reimplemented if the minimum monthly wage threshold gets to RM3,000-RM4,000, which would preclude its reappearance in the short to medium term.

The tax was first introduced in April 2015 at a rate of 6% (which reduced prices for some cars at that point) but was then scrapped in 2018 when Pakatan Harapan came to power, being replaced by the 10% sales and service tax (SST). Since then, the possibility of GST has been mooted several times

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Comments

  • Toktik on Jun 20, 2025 at 11:58 am

    Madanon so ego

    Like or Dislike: Thumb up 14 Thumb down 0
  • Janji Dicapati on Jun 20, 2025 at 12:17 pm

    Refer my name

    Like or Dislike: Thumb up 3 Thumb down 0
  • Nurul Izzah on Jun 20, 2025 at 12:18 pm

    Anwar menang rakyat senang

    Like or Dislike: Thumb up 2 Thumb down 4
  • Wonderwhy on Jun 20, 2025 at 12:30 pm

    All this naive and bullshit is just to make up that what they been promising and pushing back then….

    TBH, no one like taxes… of coz v hate GST… but u cant deny its more transparent and more efficient and most important lack of pressure to the people….

    The fact that they are continue goin on with tis stupid SST are basically face issue and also, gov desperately need money! As they been showing all sort of good news and so on before, which might not the case… so they have to raise the fund somewhere to make up those good news!

    Like or Dislike: Thumb up 24 Thumb down 0
  • Kea Was on Jun 20, 2025 at 12:55 pm

    As if when bossku implement it back in 2014 people have high income how anyway better say the government don’t know how to refund the GST taxes to business so resulting to spiraling prices everywhere to keep businesses afloat.

    Like or Dislike: Thumb up 8 Thumb down 0
  • alibaba on Jun 20, 2025 at 1:29 pm

    wat to have tonite’s dinner ya?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sohai on Jun 20, 2025 at 2:17 pm

    Malaysia will never be financially ready for it if based on your reasoning. Inflation will only keep rising and our ringgit gets weaker so our per capita income will always be low

    Like or Dislike: Thumb up 6 Thumb down 0
  • GST is fair. Everyone pays the same rate with no discrimination. The upper middle and rich will still pay more because they will buy more quantity or more expensive things. But the moment you instigate a class war by trying to impose higher tax on the rich, they will find ways to evade tax and the country ends up losing more

    Like or Dislike: Thumb up 22 Thumb down 0
    • Onhkia on Jun 21, 2025 at 2:45 pm

      The rich got the help of tax experts and probably park their money outside the country . Even if you wanna subsidized B40 there must be TnC for them . Example petrol subsidy cap to a certain amount. And the Bantuan given should be on utility payment or goes to their EPF Account 1 . Otherwise abuse are bound to happen. Taking Bantuan money go buy Iphone

      Like or Dislike: Thumb up 2 Thumb down 1
  • SST is far superior than any forms of other Tax System on Jun 20, 2025 at 2:38 pm

    High precision Tax System
    Not GST carpet Bombing Tax System

    Like or Dislike: Thumb up 1 Thumb down 16
    • DonkeyKong on Jun 25, 2025 at 12:13 am

      Can’t tell if this is sarcasm or genuine stupidity? Some hints, please?

      Like or Dislike: Thumb up 0 Thumb down 0
  • Ben Yap on Jun 20, 2025 at 2:52 pm

    reading in between the lines, it means GST will be introduced when government is ready.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Seems like the Madani government is still protecting the black economy and their taikun buddies. SST allows those taikuns to under-declare, evade tax, and pass hidden costs to the rakyat. Even all the e-invoice wont help gomen to catch all these taikun. At least GST had transparency and traceability.

    Honestly, padan muka to the stupid rakyat who bought into cheap populism without understanding the long-term cost.

    Like or Dislike: Thumb up 21 Thumb down 0
  • malaysia will never be ready for gst, as it will take money directly from the pockets of b40, unless all b40s become educated one day, and understand the taxation system, else they will topple any governments that take money directly from their pocket. they always know that sst is a flawed system, but by implementing this flawed system, only some of the middle class will vote against them, its better than doing a gst and losing b40 altogether. sst suits their best interest

    Like or Dislike: Thumb up 3 Thumb down 2
  • alibaba on Jun 23, 2025 at 9:22 am

    since our country is a democracy place rite? can we rakyat sue gomen on earning huge profit from us? like they controlling our profit also

    Like or Dislike: Thumb up 2 Thumb down 0
 

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