KUALA LUMPUR, Nov 12 — Prime Minister Datuk Seri Anwar Ibrahim said those advocating for the Goods and Services Tax (GST) are effectively proposing shifting the tax burden from businesses and exporters to the public.
He said the Madani Government has retained the Sales and Services Tax (SST) as GST was a broad-based tax that also affects low-income earners, while SST is more focused on the business sector.
“In principle, SST is a tax on businesses, although a small portion of it is passed on to consumers. That is true, but GST is comprehensive, so I do not understand why those claiming to champion the people want to impose a tax on everyone,” he said during Minister’s Question Time in the Dewan Rakyat today.
Anwar, who is also finance minister, said about 2,000 types of goods and services are exempt from tax under SST, compared with fewer than 750 under GST, and that SST revenue accounts for 3.2 per cent of the gross domestic product (GDP), the same recorded by GST revenue in 2017.
He however said the government is open to improving the system to address any double taxation.
“Where there are specific cases involving double taxation, we can make adjustments. I am not dogmatic about economics. The system will remain SST, but with some adjustments to improve it. Why not?” he said.
“I am firmly against the GST. It’s not about politics. What is political about choosing what benefits the national economy and the people? GST is a tax imposed on everyone. SST is a tax levied on businesses. I choose to tax businesses instead.”
He said a review of GST should only be considered when the people’s minimum income rises to at least RM4,000.
“The government believes that the cost of living remains a burden on the people, and as long as their incomes have not reached a reasonable level, it would not be appropriate to reintroduce GST,” Anwar added.
