World · Malaysia Bureau
Umno calls for GST reinstatement, rejects hybrid tax system
The ruling party's president has signaled support for reintroducing the goods and services tax at a more reasonable rate, dismissing alternative taxation approaches.
LSN Malaysia ·
Umno is pushing for the reinstatement of the Goods and Services Tax (GST), according to party president Ahmad Zahid Hamidi, who expressed the coalition's preference for a straightforward goods and services taxation model over hybrid alternatives.
Zahid indicated that Umno believes a GST system could be implemented at a more moderate rate than previously applied, suggesting the party views the consumption-based tax as preferable to current arrangements or proposed hybrid systems.
The position marks a significant stance on fiscal policy from Malaysia's largest ruling party, as the government continues to evaluate taxation frameworks. The GST, which was replaced by the Sales and Service Tax (SST) system in 2018, has remained a contentious issue in Malaysian economic policy debates.
Umno's renewed advocacy for GST suggests potential shifts in the coalition's approach to revenue generation and tax policy, though the party has not detailed specific rate proposals or implementation timelines. The statement reflects broader discussions within the ruling coalition regarding optimal taxation structures to balance revenue requirements with economic competitiveness.