World · Malaysia Bureau
Government must clarify GST-SST hybrid tax implementation, says analyst
A policy analyst has urged the Malaysian government to provide clear details on the combined goods and services tax and sales and service tax system. The call comes as authorities prepare to implement the new tax regime.
LSN Malaysia ·
Wan Ahmad Fayhsal Wan Ahmad Kamal, head of policy research at Institut Wawasan, has called on the government to offer greater transparency regarding the mechanics of the GST-SST hybrid tax system set to be introduced.
The analyst emphasised that authorities must clarify three critical elements of the new taxation framework: the applicable tax rates, the scope of goods and services covered, and how input tax credits will function under the dual system.
Without clear guidance on these fundamentals, Wan Ahmad Fayhsal warned that businesses and consumers could face confusion during the transition period. He stressed the importance of comprehensive communication to ensure smooth implementation and public understanding.
The government has previously indicated plans to introduce elements of both GST and SST to replace the current sales and service tax regime. Officials are expected to provide more detailed specifications in coming weeks as preparations advance.