Politics · Malaysia Bureau
Opposition demands GST reinstatement to resolve tax policy uncertainty
Malaysia's Opposition Leader has called on the government to restore the Goods and Services Tax, arguing that current fiscal arrangements are creating business uncertainty. The appeal signals continuing debate over the nation's tax framework.
LSN Malaysia ·
KUALA LUMPUR — Opposition Leader Datuk Seri Hamzah Zainudin has challenged the federal government to reinstate the Goods and Services Tax (GST), contending that the hybrid tax system currently in place is leaving businesses and consumers in a state of flux.
In calling for a return to the GST regime, Hamzah argued that the existing patchwork of sales and service taxes lacks clarity and consistency. He asserted that the replacement system introduced after GST's removal has failed to provide the predictability that businesses require for long-term planning and investment decisions.
The Opposition leader's remarks reflect ongoing tensions over tax policy direction in Malaysia. The government had abolished GST in 2018 and replaced it with a Sales and Service Tax (SST) framework. Hamzah's intervention suggests the Opposition sees merit in revisiting that transition, citing economic efficiency and business confidence as key considerations.
The call adds to wider discussions about Malaysia's fiscal architecture as policymakers weigh competing pressures between revenue generation, business competitiveness, and consumer protection. Government officials have previously defended the SST model as more targeted and transparent than its predecessor.