Politics · Malaysia Bureau
Anwar Rules Out GST Return, Pursues Targeted Tax Reforms
Prime Minister Datuk Seri Anwar Ibrahim has reaffirmed his reluctance to reinstate the Goods and Services Tax, instead signalling plans for selective adjustments to the Sales and Service Tax framework ahead of the 2027 budget deliberations.
LSN Malaysia ·
PUTRAJAYA — Prime Minister Datuk Seri Anwar Ibrahim reiterated on Monday his opposition to reintroducing the Goods and Services Tax, maintaining the government's commitment to strengthening the existing Sales and Service Tax regime through targeted reforms.
Anwar's comments underscored the administration's preference for fine-tuning current tax mechanisms rather than overhauling the system, a stance that has remained consistent despite ongoing discussions about Malaysia's revenue-raising capabilities.
The prime minister indicated that any modifications to the tax structure would be carefully calibrated to enhance the SST framework's effectiveness and ensure fiscal sustainability. Such adjustments are expected to form part of considerations for the 2027 budget cycle, which will guide medium-term fiscal planning.
The government's position reflects the political sensitivity surrounding tax policy in Malaysia, where the GST's previous implementation faced public resistance before its replacement with the SST in 2018. Anwar's preference for incremental refinements suggests an attempt to balance revenue needs with economic competitiveness and public sentiment.