The government has no plans to reintroduce the Goods and Services Tax (GST) as an alternative to removing subsidies for RON95 petrol, communications minister Fahmi Fadzil said. The minister, who is also the spokesperson for the government, dismissed these claims and said that there has been no discussion on the matter.
Fahmi was responding to a recent article published by Bloomberg, which suggested that the Malaysian government was mulling on reintroducing the tax to bolster its finances. The report, citing sources familiar with the matter, claimed the cabinet held a discussion on this matter, arguing that reinstating GST might be politically easier than removing petrol subsidies for RON95, given that the country is an oil producer and many Malaysians view affordable petrol as essential.
GST was first introduced by former prime minister Datuk Seri Najib Razak back in 2015 at 6%. It was replaced by the sales and services tax (SST) in 2018 due to its broad application as a consumption tax.
Meanwhile, economy minister Rafizi Ramli said that Malaysia is not keen on reintroducing GST, Malay Mail reports. He added that there are many ways to achieve fiscal strengthening with different groups offering varying perspectives. The minister was responding to questions regarding an economic survey by France-based Organisation for Economic Co-operation and Development (OECD) published on 27 August, which recommended for the government to reinstate the tax in order to increase its revenue.
(Source: Bernama)
