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DAP lawmaker urges government to reinstate GST instead of complex hybrid system

A DAP parliamentarian has called on the government to reintroduce the Goods and Services Tax rather than implement a complicated hybrid taxation framework. Kepong MP Lim Lip Eng argued that the simpler approach would avoid the need for a complex dual system.

LSN Malaysia · 5 September 2026

DAP lawmaker urges government to reinstate GST instead of complex hybrid system

Kepong Member of Parliament Lim Lip Eng has urged the federal government to restore the Goods and Services Tax instead of developing an intricate hybrid taxation structure to circumvent using the GST nomenclature.

The DAP lawmaker contended that reverting to the GST would be more straightforward than establishing a complicated alternative system combining multiple tax mechanisms.

Lim's remarks reflect ongoing debate within parliament regarding Malaysia's tax structure following the replacement of GST with the Sales and Service Tax in 2018. The government has been considering various taxation frameworks as it seeks to balance revenue requirements with public sentiment surrounding the GST brand.

The proposal to reinstate GST directly has gained traction among some opposition lawmakers who argue that rebranding exercises create unnecessary administrative complexity and confusion for businesses and consumers alike.

The government has not yet responded to the latest calls for GST reinstatement, with officials maintaining that current tax arrangements meet the nation's fiscal objectives.