Bersama unveils shadow budget, moots 5% GST, cash aid overhaul
The party says a 5% GST and targeted assistance will strengthen social protection while reducing fiscal deficit over the next decade.
Bersama has presented its shadow federal budget, which includes proposals for a capped 5% goods and services tax (GST) and the elimination of several cash aid schemes. The party argues that a 5% GST could generate around RM76.1 billion in revenue by 2027, compared to the RM59.4 billion projected from the 6% sales and services tax (SST) in 2026.
This would add approximately RM16.7 billion to the government's revenue. Bersama proposes replacing the Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) schemes with a monthly cash handout of RM200 to the bottom 60% of households, along with a monthly allowance of RM50 per Malaysian child under 18, capped at five children per household.
The party also suggests studying the potential introduction of a retail electronic payment tax (REPT) from 2027 to 2029, which could generate about RM9.1 billion annually if feasible. Bersama believes these measures could help Malaysia achieve a budget surplus by 2035, ending its fiscal deficit for the first time since 1997.
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- Bersama unveils shadow budget, moots 5% GST, cash aid overhaul freemalaysiatoday.com
