Prime Minister, Datuk Seri Anwar Ibrahim stressed that the government is not ready to re-implement the Goods and Services Tax (GST) because it risks burdening the low-income group in the current challenging economic situation.
While giving the closing speech of the Madani Rakyat 2025 Program in Lumut on Sunday, Anwar stressed that the GST is a comprehensive tax imposed on all levels of society regardless of income level, including groups such as fishermen, smallholders and cleaning workers.
He explained that although the GST is an efficient and simple taxation system with a flat rate of 6%, its implementation will also burden the low-income group including the poor and unemployed, who should not be taxed in the current economic situation.
Despite proposals from the opposition to re-introduce the GST, the government decided to postpone its implementation to avoid the pressure of higher living costs on the people.
He added that the current Sales and Services Tax (SST) system is more targeted, imposing taxes on imported luxury goods such as avocados and cod, compared to local basic goods such as bananas.
The government, he said, is also committed to channeling the tax revenue towards the development of national infrastructure including hospitals, schools, the defence system and various welfare programmes for the people.
Despite being aware of the weaknesses in the implementation of the SST, Anwar stressed that the government is always open to examining and improving the existing taxation system in the interest of the country.
