KUALA LUMPUR: Umno Youth has renewed calls for the reinstatement of the Goods and Services Tax (GST), pointing to its superior revenue generation during its previous run compared to the current Sales and Services Tax (SST).
Addressing the wing’s annual general assembly on Thursday (Sept 10), Umno Youth chief Datuk Dr Muhammad Akmal Saleh highlighted that GST collection once surpassed RM44.3bil, comfortably outperforming SST revenues.
He noted a shift in the government's stance, citing Prime Minister Datuk Seri Anwar Ibrahim's previous statements.
“The Prime Minister previously ruled out the return of the GST, despite economists and industry players advocating for a broader, more transparent system," Dr Akmal said. "Now, the government is preparing to review a hybrid approach combining the best elements of both GST and SST. If a door that was once firmly shut is reopening, does that not indicate a change of heart?”
Dr Akmal also referenced support from across the political aisle, pointing to Kepong MP Lim Lip Eng of DAP, who suggested bringing back the tax if proven more effective than SST.
“If DAP representatives are bold enough to utter 'GST', why is the Prime Minister so hesitant about those three letters?” Dr Akmal asked, jokingly suggesting the government could even rebrand it as the "Madani Tax."
"We are not like the former opposition. If a policy is good, we will support it; if not, we will oppose it," he added.
In August, Prime Minister Anwar Ibrahim clarified that while SST remains the foundation of the country's tax framework, the government remains open to studying whether key GST mechanisms could be integrated into the existing system.
The multi-stage consumption tax was first introduced on April 1, 2015, at a rate of 6%, before being zero-rated on June 1, 2018. It was officially replaced by the SST on Sept 1, 2018, fulfilling a core election pledge of the Pakatan Harapan coalition.
