Umno wants GST back, rejects GST-SST hybrid

Umno, a political party, is advocating for the reintroduction of the goods and services tax (GST) at a more reasonable rate as part of their proposed "Malaysia Blue Agenda." The party, led by Umno president Ahmad Zahid Hamidi, firmly rejects the hybrid system that combines GST with the current sales and service tax (SST). According to Hamidi, "Change the taxation system back to GST. There is no hybrid. No country has a hybrid." He reiterated this stance in his opening speech at the party's general assembly.

The GST, a multi-stage consumption tax, was initially introduced in April 2015 at a 6% rate before being zero-rated in June 2018 and subsequently replaced by the SST in September of the same year. Anwar, a prominent figure, recently suggested that the government might consider a system that merges elements of the GST and SST to create a more progressive tax structure.

Zahid argues that reintroducing an adjusted GST would bolster social security, simplify business operations, and contribute to regional economic development. He emphasizes that the proposal is part of the eight-point "Malaysia Blue Agenda," which BN and its allies would pursue should they regain power. The agenda aims to prepare Malaysia for its centenary of independence, focusing on wealth creation, human capital rebuilding, ownership expansion, welfare protection, crisis preparedness, social care, trust rebuilding, and national interest protection.