PM Anwar says SST stays, GST off table till economy and wages rise
LUMUT, June 15 — The government is not ready to reintroduce the Goods and Services Tax (GST) as it would affect all segments of society, particularly the poor, said Datuk Seri Anwar Ibrahim.
The Prime Minister said GST is a broad-based tax that would be applied uniformly to all consumers, regardless of income, including fishermen, smallholders, or street cleaners.
'GST taxes everybody. While it is efficient and straightforward, just six per cent across the board, I must ask, if everyone has to pay six per cent, why should the poor and the unemployed be taxed as well?' he said when closing the Perak Madani Rakyat Programme (PMR) 2025 here today.
Anwar said that although the opposition has suggested GST as a better option, the government has chosen to postpone its implementation to avoid burdening the people, who are still struggling with the rising cost of living.
'That's why we say we're not ready for GST. If, one day, the economy improves and the minimum wage reaches RM4,000 or more, then by all means, implement GST. But for now, I'm calling for it to be postponed, don't turn it into a political issue,' he said.
Anwar said the government is retaining the Sales and Services Tax (SST), which is more targeted in nature, particularly on imported luxury items such as avocados and cod, products typically consumed by high-income earners.
'Local bananas are not taxed, but expensive imported fruits like avocados, usually consumed by those in the high-income group, should come with a slightly higher price. The same goes for cod, which is also imported and costly, so we tax it,' he said.
As such, he emphasised that the tax revenue collected from these imported and high-end goods could be used to develop infrastructure that benefits the people, such as hospitals, schools, and the national defence system.
However, Anwar said the tax revenue collected by the government is not solely meant to cover the country's operating expenditure, but also to fund various development and welfare initiatives that directly benefit the people.
According to the Prime Minister, although there are weaknesses in the SST system, the government remains open to reviewing and enhancing it comprehensively in the nation's best interest. — Bernama
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