PM Anwar Says Only Business Groups Back GST Reintroduction

Prime Minister Anwar Ibrahim has dismissed calls for the reintroduction of the Goods and Services Tax, characterizing support for the measure as coming primarily from business groups and commercial operators.

Addressing Parliament, Anwar suggested that proponents of reinstating the consumption-based tax system were motivated by narrow commercial interests rather than broader economic considerations. He highlighted concerns that the tax structure would place additional financial pressure on ordinary Malaysian consumers.

The GST, which was implemented in 2015 at a six percent rate, was replaced by the Sales and Service Tax following the change of government in 2018. The debate over Malaysia's tax system has periodically resurface, with business associations and economists advancing arguments about economic efficiency and government revenue collection.

Anwar's remarks reflect the government's current position on maintaining the existing tax framework and suggest resistance to policy shifts that might increase the cost of living for Malaysian households. The government has previously indicated its preference for alternative revenue-raising measures that do not directly impact consumer pricing.