UMNO Youth pushes for GST return, suggests tax rebranding option

UMNO Youth has renewed calls for the Goods and Services Tax (GST) to be reintroduced, arguing that the levy remains an effective revenue collection tool for the government. The proposal was raised during UMNO's annual general meeting, signalling the party's continued support for the consumption-based tax despite its political unpopularity when previously implemented.

Akmal, addressing the party delegates, suggested a pragmatic approach to reviving the tax by proposing it could be rebranded under a different name. According to Akmal, as long as the underlying tax mechanism remains unchanged, the government would have flexibility in how it presents the levy to the public.

The GST was implemented in Malaysia in 2015 at a standard rate of 6 per cent but was abolished in 2018 following public backlash over cost-of-living concerns. It was replaced with the Sales and Service Tax (SST), a narrower tax that generated less revenue for the federal government.

UMNO's position reflects the party's argument that a broader-based consumption tax is necessary for sustainable government finances. The youth wing's push for the tax's return indicates ongoing debate within Malaysia's political establishment about optimal taxation strategies, even as public sentiment on the issue remains sensitive.