{
  "id": 3398722,
  "title": "The question is not GST or SST — Hal Lai Keong and Ong Tze Chin",
  "url": "https://urgent.news/2026/08/26/the-question-is-not-gst-or-sst-hal-lai-keong-and-ong-tze-chin",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-26T01:19:37.000Z",
  "source": {
    "name": "Malay Mail",
    "slug": "malay-mail-malaymail",
    "url": "https://www.malaymail.com/news/what-you-think/2026/08/26/the-question-is-not-gst-or-sst-hal-lai-keong-and-ong-tze-chin/232638"
  },
  "original_language": "en",
  "account": "The Malaysian government's announcement to study the potential integration of certain features of the goods and services tax (GST) into the existing sales and service tax (SST) has sparked debate. However, the proposed study should take a broader approach rather than simply choosing between GST and SST. It should explore how consumption tax rules apply to digital platforms, gig economy, crypto asset transactions and emerging business models.\n\nBefore considering a hybrid model, the government should thoroughly assess the current SST framework to identify any limitations. This includes evaluating revenue, tax cascading, consumer prices, business compliance costs, and the treatment of digital transactions since SST was expanded in July 2025. Any identified issues should be clearly documented to justify the incorporation of GST elements.\n\nA hybrid system could lead to various administrative, implementation and enforcement issues including increased tax evasion, compliance burdens for businesses, market distortions and a potential decline in national economic prospects. The study must clearly define what a hybrid system entails and its potential drawbacks.\n\nTo make the tax system more progressive, targeted financial assistance may be more effective than trying to solve all issues through a hybrid GST-SST system. This requires clear definitions of roles and authority for exchanging information among multiple agencies involved. The study should also draw lessons from Malaysia's own GST reform from 2015 to 2018, analyzing what worked, what created difficulties and whether those difficulties were due to GST design or implementation.\n\nMeaningful public consultation is crucial, with the government publishing identified problems, options, and expected effects on revenue, households and business costs. Consumer groups, small businesses, digital platforms, tax professionals and administering officers should all be consulted. Any changes should only be introduced after thorough testing and sufficient preparation time for businesses. Finally, any reforms must align with internationally recognized tax principles to ensure fairness, understandability, revenue collection efficiency and adaptability to technological changes. These reforms should also uphold Malaysia's Madani values of prosperity, innovation, trust and community care.",
  "summary": "AUGUST 26 — This article responds to the recent announcement made by the government that it is prepared to study w...",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}