Prime Minister Datuk Seri Anwar Ibrahim has again expressed reservations about bringing back the Goods and Services Tax (GST), although he said the government is open to adopting certain elements of the consumption tax to improve the existing Sales and Services Tax (SST).
Speaking to reporters after attending the Budget 2027 engagement session with businesses and ministries at the Finance Ministry, Anwar, who is also Finance Minister, said the government was willing to explore ways to strengthen the country’s tax system.
“We are open to studying ways to improve the tax system,” he said.
However, Anwar stressed that he remains concerned about the broad-based nature of GST, as it would effectively impose taxation across the population.
Earlier during the dialogue, he recalled that he had regarded GST as one of the most efficient tax systems since the 1990s, when he served as finance minister under the first administration led by Tun Dr Mahathir Mohamad.
GST was abolished by the first Pakatan Harapan (PH) government after it came to power, in line with an election pledge that linked the consumption tax to rising living costs. However, some PH leaders later acknowledged the argument that GST offered greater structural transparency and efficiency.
Speculation over a possible return of GST has resurfaced amid the government’s efforts to strengthen tax collection under the current PH-led administration. Anwar has previously indicated that GST would only be reconsidered once living standards and median incomes have improved.
“There is one thing I will not compromise on. I do not want a tax imposed on the people comprehensively,” he said.
He reiterated that his concern was particularly focused on GST being a broad-based tax that would affect consumers across the board.
