Opposition leader challenges Putrajaya to revive GST, end ‘uncertainty’

Opposition leader Datuk Seri Hamzah Zainudin questioned the government on Oct 12 to revive the goods and services tax (GST) and put an end to the ongoing uncertainty. During the debate on the Supply Bill (Budget) 2027, Hamzah pointed out that the hybrid taxation proposal was a tacit admission that rejecting the GST was a mistake.

He also noted that recent proposals to merge elements of consumption tax into the existing Sales and Service Tax (SST) showed that the SST system had flaws. "If you want the GST, just implement the GST. Don’t leave the people waiting in uncertainty," Hamzah stated. He further alleged that current Pakatan Harapan lawmakers in the government were "embarrassed" to support the revival of the GST due to their previous rejections of the tax.

Introduced at a standard rate of six percent in April 2015 under former Prime Minister Datuk Seri Najib Razak, the consumption tax became a hotly contested issue in Malaysian political campaigns. After the 2018 general election, where the People’s Alliance (PH) won in a landslide, the administration initially zero-rated the GST before eventually scrapping it in favor of the current SST regime.