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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