PETALING JAYA: Opposition Leader Datuk Seri Hamzah Zainudin has proposed bringing back the goods and services tax (GST), but at a revised rate.
He said recent tax measures appeared to favour reintroducing GST, although the government had stopped short of calling it that.
“Right now, we seem to be heading in that direction, but no one is saying it. Perhaps there is some reluctance because they opposed it previously.
“Now, perhaps the GST seems to be the better option and, after some adjustments, we are eventually heading back to it.
“Just call it what it is but think about the rate,” he said when debating Budget 2027 in the Dewan Rakyat on Monday (Oct 12).
The GST was abolished in Malaysia on Sept 1, 2018, during the first Pakatan Harapan administration and replaced by the Sales and Service Tax (SST).
Earlier this year, 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.
Hamzah said the government must provide a clear and consistent direction on taxation to allow businesses to plan and make financial projections.
“Just make it clear so we do not confuse investors as well.
“The rakyat can accept it. Just think of the proper rate,” he said.
On Budget 2027, Hamzah said the spending plan must reflect economic realities and deliver tangible benefits to the people.
“While the figures look good on paper, they do not reflect what the rakyat are going through.
“Although there are measures in place to help manage the cost of living, are they enough?” he asked.
Hamzah said greater emphasis should be placed on generating economic growth that would benefit future generations.
“If the country’s income does not improve, where do we get the funds to uplift the rakyat?
“We need to move away from merely allocating funds and focus on creating greater value,” he said.
