KUALA LUMPUR: There are no plans to reintroduce the Goods and Services Tax (GST) for now, the Dewan Rakyat was told.
While acknowledging the benefits it brings, the Finance Ministry said the Sales and Services Tax (SST), which is currently being implemented, provides a swifter financial impact for the government.
“As mentioned by the Prime Minister previously, the government does not intend to implement the GST.
“This is due to many factors that require thorough deliberation, including disposable income and the cost of living,” it said in a written reply on Friday (Jan 23).
The ministry said the SST would be retained and improved.
It also noted that SST has been used in Malaysia for more than 4 decades.
The ministry added that reintroducing the GST requires a lengthy preparation period of up to two years to allow businesses to update their systems accordingly.
The ministry was responding to a question from Datuk Ku Abd Rahman Ku Ismail (PN-Kubang Pasu), who asked whether the government intends to reintroduce the GST, noting that many financial experts viewed it as a more comprehensive taxation system than the SST.
