Govtt rules out GST revival for now, citing cost of living concerns

THE government has once again ruled out any immediate plans to reintroduce the Goods and Services Tax (GST), citing concerns over disposable income and the cost of living, the Dewan Rakyat was told on Thursday.

While acknowledging the advantages of the GST, the Ministry of Finance (MOF) said the Sales and Services Tax currently in place provides a faster financial impact for government revenue.

“As mentioned by the Prime Minister previously, the government does not intend to implement the GST,” the ministry said. “This is due to many factors that require thorough deliberation, including disposable income and the cost of living.”

In its written parliamentary reply dated Jan 23, the ministry said the SST would be retained and further improved, noting that the tax system has been in use in Malaysia for more than four decades.

The ministry also highlighted that reintroducing the GST would require an extensive preparation period of up to two years, allowing businesses sufficient time to upgrade and adjust their accounting and compliance systems.

The response was given to Datuk Ku Abd Rahman Ku Ismail (PN–Kubang Pasu), who asked whether the government was considering bringing back the GST, pointing out that many financial experts regard it as a more comprehensive taxation system compared with the SST. - January 23, 2026