UNITY government spokesman Fahmi Fadzil has dismissed reports suggesting that the government is considering reinstating the goods and services tax (GST).
“There are no such discussions,” Fahmi said today when asked about the matter following the National Day rehearsal.
The denial comes after Bloomberg reported yesterday (Aug 28), citing unnamed sources, that the Cabinet had explored the possibility of bringing back the GST as an alternative to cutting subsidies for RON95 petrol.
According to the report, no decision has been made due to the political sensitivities surrounding the issue.
Bloomberg’s report also suggested that there is a growing view within the government that reintroducing the GST may be politically easier than removing subsidies for RON95 petrol, which is widely considered a necessity by most Malaysians, especially since Malaysia is an oil-producing country.
The GST was originally introduced in 2015 at a 6% rate under former premier Datuk Seri Najib Razak but was abolished in 2018 due to its broad impact as a consumption tax. – Aug 29, 2024
