PUTRAJAYA has not completely rejected the idea of bringing back the Goods and Services Tax (GST), Deputy Finance Minister Ahmad Maslan told the Dewan Rakyat today.

He said the government is evaluating the right time to reintroduce the “unpopular” GST. 

“We have not put a complete full stop (in implementing) GST.

“Just that, it will not be this year,” the Pontian lawmaker said during the minister’s question and answer session. 

Ahmad was responding to a question from R.S.N. Rayer (Jelutong-PH), who asked if the current government will reintroduce GST.

Ahmad said re-introducing GST could generate more income for the country, which in turn could aid the poor population in the country. 

“GST can be designed to be a progressive tax for the future by imposing a zero-rate tax on basic goods and services used by the underprivileged.

“In the future, GST could actually help generate more income (for the country).

“With that extra income, we can help the poor. Maybe right now, we want to end hardcore poverty. If there is GST, then we can not only end the poverty of those earning RM1,109 but also those earning RM2,208 and below.”

Ahmad said with GST in force from 2015 to 2018, Malaysians still enjoyed a reasonable standard of living with current needs.  

Ahmad justified that 174 of 193 countries across the globe have introduced GST or Value Added Tax (VAT). 

“About 90% of the countries around the globe have implemented GST or VAT. 

“So, if we look at the trend, we can’t say that the 174 countries have made a mistake by implementing GST,” he said. 

In sharing the GST income from 2015 till 2018, Ahmad said Malaysia generated a total of RM201 billion.

“Exclusing the GST refunds amounting to RM67.8 billion, the net GST income for almost three and a half years is RM133.1 billion,” Ahmad said. 

Earlier, Prime Minister Anwar Ibrahim had said the government was not looking at imposing more taxes on the public, including by reintroducing the GST, as a way to reduce the RM1.5 trillion national debt. 

Anwar, who is also finance minister, in the re-tabling of Budget 2023, said the wealthy would face higher taxes, with taxes on luxury goods and capital gains, as well as e-cigarettes or vape. – March 9, 2023.