KUALA LUMPUR: Replacing sales and service tax (SST) with the goods and service tax (GST) can ensure a more efficient taxation system, says Datuk Seri Dr Wee Ka Siong.
Dr Wee (BN-Ayer Hitam) said reinstating the GST will also avoid clashing taxes, which can lead to a rise in the cost of goods.
“We can always change the name, be it the Madani Tax or whatnot, as long as it is based on the GST concept,” he said when debating the Supply Bill 2025 in the Dewan Rakyat on Tuesday (Oct 22).
Dr Wee added that the expansion of items covered by SST will not make it much different from the GST by next year.
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“Previously, the Pakatan Harapan administration said SST is better as there are fewer taxed items and no complex system to it.
“However, the reality now is that the SST has been expanded and will see another expansion (to) more sectors next year.
“There’s not much difference between both after this.
“The difference however is that GST is more efficient in tackling the shadow economy and there are also lesser leakages as well as being more transparent,” Dr Wee said.
He added that the e-invoicing system, set to be fully implemented next year, also has characteristics of the GST system.
“If we (bring back) the GST, e-invoicing will not be needed.
“At the same time, e-invoicing implementation will incur additional costs for the government through purchasing ICT equipment and software.
“How much will be spent on this?
“This has also yet to take into account security risks in the event of hacking,” Dr Wee said.
The GST was introduced in April 2015 by then prime minister Datuk Seri Najib Razak but was abolished in 2018 under the Pakatan government led by Tun Dr Mahathir Mohamad.
