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

In a contentious debate over the Supply Bill (Budget) 2027, Opposition Leader Datuk Seri Hamzah Zainudin accused the government of tacitly admitting its rejection of the Goods and Services Tax (GST) through its hybrid taxation proposal. The Pakatan Harapan lawmaker argued that recent attempts to integrate elements of consumption tax into the existing Sales and Service Tax (SST) system demonstrated the inadequacy of the latter.

Hamzah urged the government to either fully implement the GST or cease leaving the public in a state of uncertainty regarding its intentions. He suggested that the current government representatives were now "embarrassed" to advocate for the revival of the GST due to their previous opposition to it. The GST, initially introduced at a standard rate of six percent in April 2015 under former Prime Minister Datuk Seri Najib Razak, became a focal point in Malaysian electoral politics following the Pakatan Harapan administration's resounding victory in the 2018 general election.

Initially, the PH government opted to zero-rate the GST before subsequently abolishing it in favor of the current SST regime.