Anwar Dismisses Full GST Reinstatement Over Cost-of-Living Fears

KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has firmly rejected calls for the full reinstatement of the Goods and Services Tax (GST), stating that such a move would exacerbate cost-of-living pressures facing Malaysian households.

The premier's stance reflects the government's commitment to maintaining the current Sales and Service Tax (SST) framework, which replaced the GST in 2018. Anwar's declaration comes as policymakers continue to balance revenue generation with public welfare considerations amid persistent economic headwinds.

The decision underscores the administration's focus on protecting consumer purchasing power at a time when Malaysians face mounting expenses across essential goods and services. Government officials have previously indicated that alternative revenue-raising measures are being explored to address fiscal requirements without compromising household budgets.

The GST debate remains a contentious policy issue in Malaysia, with economists divided on its merits and broader economic implications. The government's preference for SST has been broadly welcomed by consumer advocates, though some fiscal analysts argue that modernising the tax system could yield long-term economic benefits.