Umno wants GST back, rejects GST-SST hybrid

Umno, the opposition party in Malaysia, is advocating for the reintroduction of the Goods and Services Tax (GST) at a lower rate, as part of its "Malaysia Blue Agenda". This agenda aims to reshape the country's economic priorities. Umno's president, Ahmad Zahid Hamidi, firmly rejected the proposed hybrid system that combines GST with the Sales and Service Tax (SST).

He emphasized that no country currently operates a hybrid system. "God willing, our resolve is to bring GST back into the country's taxation system at a more reasonable rate," he stated during 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 under the Barisan Nasional administration. However, it was subsequently zero-rated in June 2018 and replaced by the SST in September 2018. There are indications that the current government might explore a system that integrates elements of both GST and SST to create a more progressive tax structure.

Nevertheless, Zahid remained committed to Umno's proposal to reintroduce the GST independently. He argued that this move could strengthen social security, simplify business operations, and contribute to regional economic development. The "Malaysia Blue Agenda" is part of eight-point plan that Umno plans to pursue if they come into power again, focusing on wealth creation, human capital development, ownership expansion, welfare preservation, crisis preparedness, people care, rebuilding trust, and national interest protection.