KUALA LUMPUR: Umno plans to bring back the Goods and Services Tax (GST) if it returns to heading the federal government, with Datuk Seri Dr Ahmad Zahid Hamidi rejecting the proposed idea of a hybrid GST-SST system.
The Umno president said the party was committed to reintroducing GST at a more reasonable rate, arguing that it was a better approach than combining different taxation systems.
“Allah willing, our resolve is to bring GST back into the taxation system.
“We are determined to reintroduce GST at a more reasonable rate and percentage,” he said in his policy speech at the opening of the 2026 Umno General Assembly at the World Trade Centre here on Friday (Sept 11).
Ahmad Zahid also criticised the idea of a hybrid taxation system involving GST and the Sales and Service Tax (SST).
“There is no such thing as a hybrid system. No country has a hybrid system.
“GST plus SST,” he said, drawing laughter from delegates.
“Bossku got it right,” he added.
Ahmad Zahid then asked delegates to show their support for the return of GST, with almost all of them standing and cheering.
“Do you all in this hall agree? I want to see how many people in this hall support GST,” he said.
He said Malaysia should not adopt a hybrid GST-SST system, which he claimed had not been implemented by any other country.
In August, Prime Minister Datuk Seri Anwar Ibrahim said the government was open to incorporating certain GST elements into the SST as part of efforts to develop a more progressive tax system.
