Explain how integrated GST-SST system will work, govt told

Prime Minister Anwar Ibrahim stated that the government is examining a system that combines elements of both the Goods and Services Tax (GST) and the Sales and Service Tax (SST) to create a more progressive tax structure. However, information chief Wan Ahmad Fayhsal Wan Ahmad Kamal urged the government to explain how this proposed hybrid tax system would function.

He emphasized that a policy shift of this magnitude should not be implemented on a trial-and-error basis due to its potential impact on consumers and businesses. The government cannot merely claim it seeks the best aspects of both systems without providing clarity on the mechanics, tax rates, scope of goods and services, registration thresholds, and input tax credit handling.

Small and medium enterprises are already grappling with multiple changes such as e-invoicing while bearing the increasing costs of raw materials, utilities, energy, logistics, and wages. Any new tax system would introduce additional costs, including software and staff training, accounting fees, and reworked invoicing processes. Therefore, the government must present an impact study and compliance cost assessment before announcing new policy directions.

Wan Ahmad Fayhsal questioned the necessity of incorporating GST components if the government considers SST a more targeted system. He argued that people do not need another new name for a tax but rather policy stability, rate certainty, compliance ease, and assurance that tax changes will not exacerbate the cost of living.