Industry wants GST elements
Malaysian business groups are urging the government to integrate GST-like features into the existing Sales and Service Tax (SST) framework. They argue this would improve efficiency and reduce administrative burdens without the complexity of a full consumption tax.
Why it matters
Highlights ongoing economic policy debates regarding tax reform and business compliance costs in Malaysia.
KUALA LUMPUR: Business groups have urged the government to incorporate key Goods and Services Tax (GST) features into the Sales and Service Tax (SST) without imposing the complexity or heavy consumer burden of a full consumption tax.
They said the refined framework must reduce supply-chain tax cascading, enhance transaction visibility and simplify the recovery of legitimate input tax.
They also called for higher registration thresholds, faster refunds, streamlined compliance requirements and protection for smaller businesses and essential household spending.
Businesses have long called for the GST to be reinstated at a lower introductory rate, with a more efficient tax-recovery and refund system. However, they are now focusing on how the government’s proposed hybrid approach can be made to work, as the SST remains the basis of the tax system.
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