3rd July 2025 - 3 min read
Finance Minister II, Amir Hamzah Azizan, has stated that it would not be practical to bring back the goods and services tax (GST) at this time. He explained that the tax system, which was zero-rated in 2018, would take at least two years to reintroduce, as many businesses, both new and established, have already adapted to operating without the GST.
Amir noted that the GST is a broad-based tax that affects everyone. In contrast, the expanded sales and service tax (SST) is designed to be more targeted. This approach avoids imposing taxes on essential items that are important to the rakyat.
“There is not enough time. It will take two years before GST can be rolled out,” Amir said during an appearance on the Keluar Sekejap podcast. “When you do implement GST, it applies across the board, and will impact everyone.”
Amir emphasised that the government has never claimed GST is a bad system. Instead, he stressed that it is simply not suitable under current economic conditions. He explained that any tax reform must be practical and aligned with Malaysia’s economic structure.
“When we impose a tax, we need to ask: is the revenue we get worth the effort?” he added.
Khairy Jamaluddin, who co-hosts the podcast with former UMNO leader Shahril Hamdan, responded by saying he could accept Amir’s explanation, acknowledging that Amir was not arguing that SST is inherently better than GST.
Prime Minister Anwar Ibrahim recently stated that the government could reconsider reintroducing GST once the economy improves. He suggested that a potential indicator would be when the national minimum wage reaches RM4,000 or more.
For now, the government has expanded the SST to include a wider range of items. This includes applying a 5% to 10% tax on non-essential goods, and extending the service tax to areas such as rent, construction, financial services, and private healthcare and education.
During the podcast, Amir also discussed the government’s current aid programmes. He compared the unity government’s Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) schemes to the previous 1Malaysia People’s Aid (BR1M) introduced during Najib Razak’s administration.
He highlighted that, under BR1M, the maximum aid a household could receive was RM1,200. In contrast, the maximum cash assistance under STR and SARA has increased significantly, reaching up to RM4,600 per household.
(Source: Free Malaysia Today)
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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