Barisan Nasional chairman Ahmad Zahid Hamidi says the coalition will push for the return of the goods and services tax (GST) after the 16th general election, calling it a fairer and more effective way to collect revenue.
Zahid said the sales and service tax (SST) would continue for now, but stressed that BN’s position on reinstating GST after GE16 was firm.
“SST is given a chance for the time being. There are still two years left (to GE16),” he said when opening the 17th Makkal Sakti annual general meeting today.
Zahid, who is also a deputy prime minister, described GST as the “best tax regime” for Malaysia, saying it allows for more efficient revenue collection, ensures fairness across all income groups, and enables the government to channel larger allocations back to the people.
He also said the country had previously implemented GST before reverting to SST, a move he attributed to political promises made at the time.
“For now, we support SST. But after GE16, we will demand that GST be implemented in the country,” he said.
The government had previously said that GST would only be reconsidered once economic conditions improve and the minimum wage reaches RM4,000 or more.
The GST, a multi-stage consumption tax, was introduced on April 1, 2015, at a standard rate of 6%, before being zero-rated on June 1, 2018.
It was replaced by SST on Sept 1, 2018 in line with the manifesto of the then Pakatan Harapan-led administration.
