Just restore GST if SST inadequate, DAP lawmaker urges government

A DAP parliamentarian has challenged the government to simply reinstate the Goods and Services Tax if the current Sales and Service Tax proves insufficient, rather than designing an intricate alternative system.

Kepong MP Lim Lip Eng said there is no justification for building a complicated hybrid taxation model merely to avoid using the GST nomenclature. His remarks reflect growing scrutiny over tax policy proposals in Parliament.

The GST, which was implemented in 2015, was replaced by the SST in 2018 following a change in government. The six-percent GST was a broad-based consumption tax that applied to most goods and services, while the SST comprises a service tax and sales tax on selected goods.

Lim's comments suggest some lawmakers believe policymakers should revisit fundamental tax architecture rather than create makeshift solutions. The debate underscores ongoing discussions about Malaysia's optimal tax framework and revenue generation amid fiscal pressures.

The government has not indicated immediate plans to reverse its position on the GST, with current administration officials maintaining that the SST remains the preferred taxation approach for the nation.