Bangi MP calls for SST improvements rather than a return to GST
Syahredzan Johan cited wider business registration requirements and a heavier impact on consumers as reasons against restoring GST.
Malaysia should keep its Sales and Service Tax (SST) and address weaknesses without restoring the Goods and Services Tax (GST), Bangi MP Syahredzan Johan told the Dewan Rakyat during the 2027 Budget debate.
He put the number of businesses that would have to register for GST and collect it at more than 900,000, against about 132,000 for SST. Smaller businesses would also face refund procedures and other tax administration work, he said.
Syahredzan said Prime Minister Datuk Seri Anwar Ibrahim had signalled openness to adopting useful GST features within SST at a 2027 Budget engagement session on Aug 18. These included steps to prevent cascading taxation.
On transparency, he pointed to the ongoing implementation of e-invoicing. He said the exemption for micro, small and medium enterprises (MSMEs) whose sales were below RM3 million balanced transparency goals against compliance demands.
He also argued that SST applied a zero per cent rate to more Sales Tax tariff lines, whereas GST covered more services. Although businesses bearing SST on inputs might prefer GST, he said consumers would be affected more heavily by its reintroduction.
Syahredzan called for a stable tax policy rather than repeated switches between the systems. He said restoring GST amid rising living costs would place an additional burden on more people.
