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Rafizi Warns GST Return Would Hit Low-Income Families, Drive Inflation

Rafizi Ramli warns that reinstating GST will burden low-income families and increase inflation, advocating for wage reforms before any tax changes.

Pandan MP and former economy minister Rafizi Ramli has warned that reinstating the goods and services tax (GST) would burden low-income households and fuel inflation. Speaking on the Yang Berhenti Menteri podcast, he said GST’s regressive nature would force families exempt from income tax to “pay tax for the first time,” adding up to RM2,000 in yearly costs. He cited the 2015 rollout, which pushed prices up by 6–7%, and urged wage reforms before any tax change. While Rafizi has acknowledged GST’s efficiency, he cautioned against its “addictive” revenue potential. The government has ruled out reintroduction for now.

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