If SST needs GST to fix it, just bring back GST, says DAP man

DAP MP Lim Lip Eng has suggested that instead of attempting to merge the sales and service tax (SST) with the goods and services tax (GST), the Malaysian government might be better off reintroducing the GST. The GST, which was initially introduced in April 2015 at a rate of 6%, was later zero-rated in June 2018. Lim believes that the government should consider bringing back a well-designed GST with stronger safeguards, faster refunds, and targeted assistance for lower-income Malaysians.

He argues that the government should not create a complicated hybrid system simply to avoid using the term "GST." Lim also pointed out that most countries use GST, making it a potentially better solution for Malaysia. Currently, at least 176 countries utilize GST, while Malaysia has no comparable international count for its SST.

Furthermore, there is no country employing the exact SST-GST hybrid currently being discussed by the government. Lim, who is also the Kuala Lumpur DAP secretary, expects Malaysia to collect RM59.6 billion from SST in 2026. Before developing a new hybrid system, the government should demonstrate to Malaysians the financial figures, including the amount of the RM59.6 billion that businesses will claim back, the refunds that will need to be issued, and the speed at which these refunds will be paid.

Lim emphasized that specifics such as these would determine whether the new system would be simpler, fairer, and more effective than the current system. Prime Minister Anwar Ibrahim recently mentioned that the government is open to examining how elements of the GST could be integrated into the existing SST system.