Politics · Malaysia Bureau
Anwar Rules Out GST Return, Citing Burden on Lower-Income Malaysians
Prime Minister Anwar Ibrahim has firmly rejected calls to reintroduce the Goods and Services Tax, arguing that such a move would place undue hardship on ordinary Malaysians, particularly those with modest incomes.
LSN Malaysia ·
KUALA LUMPUR — Prime Minister Datuk Seri Anwar Ibrahim has dismissed proposals to reinstate the Goods and Services Tax, emphasising that the measure would negatively impact households across the income spectrum, with the poorest Malaysians bearing the heaviest load.
Addressing the recurring debate over Malaysia's tax structure, Anwar stated that his administration remains committed to protecting the purchasing power of low and middle-income earners. The government has consistently sought alternative revenue streams rather than implementing consumption-based taxes that disproportionately affect ordinary citizens.
The Prime Minister's remarks come amid ongoing economic discussions about optimal taxation policies. Malaysia suspended its GST in June 2018 and replaced it with the Sales and Service Tax, a targeted levy designed to spare essential goods and services from taxation.
Anwar's position reflects the government's broader fiscal approach, which prioritises social protection while managing budgetary constraints. Officials have indicated that future revenue measures will continue to balance economic growth with equitable wealth distribution among Malaysian society.