Deputy Finance Minister II, Steven Sim Chee Keong, has emphasised that it is not the right time to reintroduce the Goods and Services Tax (GST), citing that the global economy is still slow and rising commodity prices.
He stated that a comprehensive assessment of GST’s reintroduction is necessary, considering various perspectives, rather than solely relying on input from specific interest groups.
“These parties have their reasons for GST’s reintroduction. For example, traders might say they can claim back but we need to look at the situation holistically and not just from one or two parties.
“I am not saying whether GST is good or bad but this is not an appropriate time (to implement GST), especially since we are facing a slow global economy and increase in prices of goods,” he said during a dialogue session held as part of the Perak state-level Budget 2024 Roadshow
Deputy Finance Minister I, Datuk Seri Ahmad Maslan, had previously voiced support for GST reintroduction, noting that several parties, including the Federation of Malaysian Manufacturers (FMM), Malay Chamber of Commerce Malaysia (DPMM), traders, and economic analysts, favour this move.
Ahmad, via a post on his Facebook, said previously, he faced strong opposition over the GST but now, many parties have assisted in explaining the tax.
Sim reiterated that the government possesses alternative methods to boost revenue, such as improved fiscal management, tax reforms, government procurement, and targeted subsidies, which can address the country’s fiscal needs without immediate GST reimposition.
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