OPPOSITION leader Datuk Seri Hamzah Zainudin has called on the government to provide clearer direction on taxation and openly consider reinstating the Goods and Services Tax (GST) at an adjusted rate.
The Larut MP said a clear direction on the tax system would allow businesses to forecast costs and plan more consistently.
“Just make it clear so we do not confuse investors as well. The rakyat can accept it. Just consider a proper rate.”
He noted that recent tax measures appeared to point towards a possible return of GST, albeit in an adjusted form.
“Currently, we seem to be going in that direction, but there is no mention of it. Perhaps there is some embarrassment because they had previously opposed it.
“But now, perhaps GST seems to be better, and after some adjustments, it finally leads back to it. Just call it as such,” he said during the Budget 2027 debate.
Hamzah said reinstating GST at an adjusted rate would be preferable.
GST was abolished on Sept 1, 2018 during the first Pakatan Harapan administration and replaced with 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 SST as part of efforts to develop a more progressive tax system.
On the proposed increase of the minimum wage to RM2,000, Hamzah warned of a possible cascading effect, particularly on micro, small and medium enterprises (MSMEs).
Although some MSMEs would be exempted from the higher minimum wage, he cautioned that they could lose workers to employers offering higher pay.
“I have no doubt that the minimum wage is good in ensuring more people receive decent wages, but MSMEs should also be helped.”
Hamzah said the focus should be on providing incentives for MSMEs rather than merely raising the minimum wage.
“This would minimise any shocks to their businesses and ensure their stability,” he added.
When tabling Budget 2027, Anwar said the government had agreed to raise the minimum wage from RM1,700 to RM2,000, effective June 2027.
MSMEs with annual sales below RM50mil would be exempted from the new rate to give them time to adjust their business models.
On Budget 2027, Hamzah said it should reflect the economic realities the rakyat face.
“While the figures look good on paper, they may not reflect what the rakyat is going through,” he said, adding that there must be greater emphasis on generating economic growth for future generations.
