Anwar Rejects GST, Defends SST as Fairer for Lower-Income Malaysians

Prime Minister Anwar Ibrahim firmly opposed reintroducing the goods and services tax (GST), arguing it would disproportionately burden lower-income groups, including the poor, unemployed, and small-scale workers, by taxing essentials like sugar and flour. Speaking at the Madani Rakyat programme in Lumut on June 15, 2025, he responded to Opposition claims favoring GST’s simplicity, stating it would only be viable if Malaysia’s economy strengthens and minimum wages exceed RM4,000. Anwar defended the sales and service tax (SST), which targets luxury and imported goods like avocados and codfish, sparing local staples. He emphasized that SST revenue funds essential services like hospitals, schools, and defense. Anwar also clarified that 85% of electricity consumers face no tariff hikes, countering claims of public burden, and invited feedback to refine the SST system while underscoring the necessity of taxes for national development.

SST

Business News