MCA: If GST is more efficient, Putrajaya should bring it back
By Bernie Yeo
5 hours ago
AN MCA leader has urged the government to reconsider the Goods and Services Tax (GST), saying Prime Minister Datuk Seri Anwar Ibrahim’s acknowledgement of its efficiency should prompt Putrajaya to revisit the consumption tax.
The party’s vice president Datuk Seri Dr Wee Jeck Seng said the government should have the courage to reinstate GST rather than continue modifying the Sales and Service Tax (SST) framework.
On Monday (Aug 18) Anwar, who is also Finance Minister, has acknowledged that GST is an efficient and transparent tax system but has maintained that the government is not ready to reintroduce it because of concerns over the impact on lower-income Malaysians and the cost of living.
In June 2025, Anwar said GST was among the more efficient and transparent taxation systems but explained that he had opposed its immediate reintroduction because Malaysians’ income levels were still too low.
He further noted that the government would consider a more comprehensive consumption tax when incomes had risen.
In July this year, the government again ruled out reinstating GST for now, saying SST was more targeted and could provide fiscal benefits more quickly. Anwar said GST would affect all Malaysians, including those in the B40 group, while SST was more targeted.
“Since the Prime Minister himself has acknowledged that GST has higher tax collection efficiency, the government should have the courage to reinstate it instead of continuing to patch up the existing SST system,” Wee stated.
The Tanjung Piai MP said retaining SST while incorporating selected features of GST could create further uncertainty for businesses and consumers because the two systems operated differently.
“A country’s tax system cannot be patched up every time a problem is identified. Forcing certain elements of GST into the SST system will ultimately create greater policy uncertainty,” he stressed.
“Businesses will not know what they will have to deal with next, while consumers will not have a clear understanding of how much tax they are actually bearing.”
Wee pointed out that combining elements of two fundamentally different consumption-tax systems could create additional complexity, even if the government succeeded in increasing revenue.
GST was introduced in Malaysia at a rate of 6% in April 2015 before being abolished in September 2018 and replaced by SST.
Under the current system, sales tax is generally imposed at a single stage on taxable goods, while service tax applies to specified taxable services.
The government subsequently expanded the scope of SST from July 2025 as part of efforts to broaden the tax base and strengthen revenue collection.
Official figures showed federal revenue increased in 2025, with the Finance Ministry attributing the improvement partly to the expanded SST and stronger tax compliance.
Wee, however, argued that the changes had increased costs for businesses and contributed to higher prices for consumers.
“GST is widely recognised internationally as a fair, transparent and efficient tax system. MCA, together with the domestic business community, academics and experts, has repeatedly called for its reinstatement,” he remarked.
He said the government should consider bringing back GST at a lower initial rate, such as 4% or less, while providing broader exemptions for essential goods and services.
“Businesses and the people should also be given sufficient time to adapt to the new system,” he added.
According to Wee, a properly designed GST could provide the government with a broader and more predictable revenue base while improving transparency in the tax system.
“The question is no longer whether the merits of GST are recognised. The Prime Minister has already acknowledged them. The question is whether the government is prepared to act on that recognition,” he said. ‒ Aug 19, 2026
Everyday we hear about more corruption cases being exposed, the latest one being Tabung Haji, all to be funded by Stoopid taxpayers who love GST..
ReplyDeleteAnd Jibby’s 1MDB case belum selesai lagi. Fatso still Running Free in Eastern Bullyland, being protected by some people.
All corruption charges dropped against a man who may be our next PM.
We should implement GST only when Bolehland is a Top 20 country on the Transparency Index.
GST is a more efficient tax collection system that will feed an increasingly insatiable corrupted system.
ReplyDeleteIf true, would it affect us? If yes, how much? Or them fellas at BNM are quietly, but feverish preparing counter-measures?
ReplyDeleteA heads-up, in case if you are interested.
Understand that it can be a nothingburger.
Btw, many places around the world are seriously under severe flooding...China, Philippines, US came up in x
https://x.com/SternDrewCrypto/status/2090177888238940671
🚨 The City of London Just Triggered the Next Bond Meltdown
Gulf States (Saudi Arabia, UAE, Kuwait, Qatar, etc.) suddenly cannot sell their oil at scale. No oil sales = no revenue. Saudi Arabia has recorded ZERO Oil sale to America for the first time ever.
But this exact petrodollar choke could collapse the U.S. Treasuries.
These same Gulf States are massively leveraged. They’ve borrowed heavily from Western banks to fund megaprojects, sovereign wealth plays, and lifestyle. When the oil money stops, they default.
Those defaults cascade straight into the global banking system and the epicenter is the City of London, the old petrodollar recycling hub where the big players (and their interconnected exposures) sit.
One major default wave and the British banking system lights up like 2008 on steroids.
City of London is cashing in on the Hormuz crisis. Spiking war-risk insurance at Lloyd’s, higher trading fees, Gulf loan pressures & yield surges all flow through the Square Mile.
For 50 years the petrodollar system forced the world to buy oil in U.S. dollars, then recycle those dollars into U.S. Treasuries and assets. That artificial demand is what kept the dollar as the world’s reserve currency.
No oil flowing through Hormuz = no new petrodollars. The recycling loop is broken. Demand for dollars evaporates. The dollar’s reserve status starts crumbling in real time.
In response, the U.S. Treasury is doubling the size of its own long-dated bond buybacks to at least $4 billion per operation.
The pattern is deliberate. City of London institutions and the interconnected financial architecture they dominate sit in position to influence energy chokepoints, credit flows, and the recycling of petrodollars.
This was exactly warned by the famous City of London Banker @LordBelgrave at the start of the year.
When the U.S. steps in with larger buybacks, the system absorbs the stress under terms shaped by the same global financial centers.
Indonesia...fire, volcano, earth and muka presideng di langit
Deletehttps://x.com/KangManto123/status/2090260758143848476
Kalimantan is so damn dark njirrr
this is bad, almost an entire island... no word or anything at all wokkk??
#prayForKalimantan
...and
https://x.com/kompascom/status/2089192483162923116
A flag bearing the image of President Prabowo Subianto was unfurled in the skies over Jakarta during the celebration of the 81st Anniversary of Indonesia's Independence, on Monday (17/8/2026).
The flag was unfurled by paratroopers from the Indonesian Army's Special Forces Command (Kopassus).
In addition to the flag featuring President Prabowo, the paratroopers also unfurled a giant Red and White flag.
https://x.com/RealDutchsinse/status/2090519156898795960
DeleteHeads up to my viewers worldwide: The expected large earthquake has struck the antipode in South America.
We were watching for up to M6.9 M7.0 from Ecuador to the North border of Chile.
Today, 4 days later, the expected M6.7 to M6.9 earthquake just struck South Peru, the location South of Ecuador and North of the Chile border.
https://x.com/RealDutchsinse/status/2090474948317860085
Heads up to my viewers worldwide:
A somewhat noteworthy M8 Solar flare has occurred off the "Eastern limb" of the Sun (left side as seen from SDO) .
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Two important failures of Najib GST.
ReplyDeleteIf the Government can avoid /prevent it GST MAY be made to work in Malaysia.
a) The original 6% GST was far too high, and created inflationary shocks throughout the economy. It should be initially set at a lower, Revenue Neutral level. Don't be too greedy.
b) GST Input tax reimbursement is a right , should be automatic and timely, not delayed for months even years, treated as kind of privilege triggering very intrusive audits by Kastam whenever a business raised the reimbursement.
The failure of the reimbursement mechanism also created inflationary and cash flow shocks throughout small businesses.
Large business and corporate organisations with computerised accounting systems did
not feel the shock, that's why most academics and economists were/are so Gung Ho Positive about GST