02.23.23

PM Anwar confirmed GST will not be re-introduced

Malaysia historically adopted the Goods and Services Tax system, which was then replaced by the Sales and Service Tax in 2018. Government ministers and private industries are discussing re-introducing the Goods and Services Tax system, arguing that it is the most effective way to replenish the economy. Ismail Sabri Yaakob, the former prime minister, also backed this proposal. 

However, the table has turned, since the new PM Anwar Ibrahim took office in November 2022. According to PM Anwar, GST will not be reintroduced, instead, the government will be looking to reduce subsidies for the wealthy as a measure to increase the country’s revenue.