Malaysia Rules Out GST Return, May Adapt Elements for SST

Malaysia's Prime Minister, Datuk Seri Anwar Ibrahim, has affirmed that the Goods and Services Tax (GST) will not be reintroduced. However, he indicated that certain components of the GST system could be adopted to enhance the current Sales and Services Tax (SST) framework. The primary principle guiding any tax reform is to ensure it benefits the populace, particularly those with lower incomes and the impoverished.

Anwar emphasized that any adjustments to the SST, including the potential incorporation of GST elements, must not impose additional burdens on the lowest income brackets. He reiterated that the original GST was a comprehensive tax that could affect all segments of society, including the poor, which is why he is unwilling to consider its fundamental principles. The government's focus remains on creating a fairer and more targeted taxation system.

Regarding proposals for taxes on electronic payments, the Prime Minister stated that any such suggestions would undergo thorough evaluation within the national taxation framework. Malaysia is committed to a balanced approach to increasing national revenue while safeguarding the welfare of low-income groups who are currently facing cost-of-living pressures. The government will continue to assess the best methods for strengthening the national tax system, including improving the SST based on current needs.

In a separate matter, Anwar confirmed Malaysia's consistent adherence to the One China Policy, a stance maintained since the era of the second Prime Minister, Tun Abdul Razak Hussein. He clarified that his recent remarks on Taiwan during an interview with Al Jazeera, which drew criticism, were based on this long-standing principle of respecting a nation's territorial integrity. This policy remains unchanged and will continue to be defended.