Hiking taxes without reforms misses the mark

MALAYSIANS will start paying more for a range of services today as the government raises the Sales and Service Tax (SST) from 6% to 8%. Framed as part of the Madani government’s broader fiscal reform efforts, this move is projected to generate an additional RM3bil annually.

However, a deeper look reveals that this is less about meaningful reform and more about plugging short-term fiscal gaps.