Jemaah Menteri arah kajian integrasi GST-SST

Perdana Menteri Anwar Ibrahim has instructed Finance Minister II Amir Hamzah Azizan to conduct a comprehensive study on the integration of Goods and Services Tax (GST) and Sales and Services Tax (SST), according to the source. The Ministry of Finance has been tasked with carrying out a thorough study regarding proposals to combine indirect taxes, GST and SST, prior to it being brought back to the Cabinet for further discussion.

A spokesman for the government, Fahmi Fadzil, stated that Prime Minister Anwar Ibrahim directed Finance Minister II Amir Hamzah Azizan to conduct the study. The Finance Minister has been given a limited period for providing a report and presenting it back to the Cabinet for further discussion, as stated in a media briefing following the Cabinet meeting.

The matter is still in its early stages, and the Ministry of Finance is given time as it cannot be done quickly. Fahmi mentioned that the study would examine lessons from the previous GST system as well as issues arising from the SST system. When asked if a timeframe is set, he said there isn't any. It is still unclear if the proposal will be included in the upcoming Federal Budget.

GST, a consumption tax applicable at various levels, was introduced in April 2015 at a rate of 6% before being replaced by SST at 0% in June 2018. Recently, Anwar said the government is open to studying a system that combines elements of GST and SST to create a more progressive tax structure. Meanwhile, Fahmi announced that the Cabinet has finalized a comprehensive border management plan to be implemented immediately.

The plan has been approved and presented by the Ministry of Transportation and the Ministry of Home Affairs (MOHA), and Fahmi added that MOHA has further details regarding the plan.