Politics · Malaysia Bureau
Anwar orders comprehensive review of hybrid SST-GST tax system
Prime Minister Datuk Seri Anwar Ibrahim has tasked the Finance Ministry with conducting a thorough examination of a potential hybrid sales and service tax-goods and services tax model. The findings will be presented to Cabinet for consideration.
LSN Malaysia ·
KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has directed the Ministry of Finance to undertake a comprehensive study into implementing a hybrid system combining elements of the Sales and Service Tax (SST) and Goods and Services Tax (GST), according to official sources.
The directive comes as the government explores options to modernise Malaysia's tax structure and potentially broaden the revenue base. The hybrid approach would blend features from both tax systems, with the Finance Ministry tasked with analysing feasibility, economic impact, and implementation challenges.
Once the study is completed, the findings and recommendations will be forwarded to the Cabinet for deliberation and decision-making. The move signals renewed government focus on tax reform as part of broader fiscal strategy discussions.
The study is expected to examine various technical aspects including administrative requirements, potential impact on businesses and consumers, and alignment with regional tax practices. Officials have not indicated a timeframe for the review's completion or Cabinet presentation.
This development reflects ongoing discussions within government circles about optimising Malaysia's tax system to enhance efficiency and revenue collection while managing the economic implications for stakeholders across all sectors.