PMX: No GST until people’s minimum income reaches RM4,000

Anwar speaking at the Dewan Rakyat on Nov 12, 2026. Photo: Jabatan Penerangan Malaysia

by DayakDaily Team

KUCHING, Nov 12: The government will not reintroduce the Goods and Services Tax (GST) as long as the people’s minimum income remains low or below RM4,000, said Prime Minister Datuk Seri Anwar Ibrahim.

He stressed that the decision was based on economic considerations and the people’s well-being, rather than political factors as alleged by certain quarters.

“If the people’s minimum income reaches RM4,000, we can review the implementation of the GST because the tax would not be considered overly burdensome and could generate better revenue.

“However, our people’s income is currently still at a low level,” he said in the Dewan Rakyat today, according to a TVS report.

Anwar said the government would retain the Sales and Services Tax (SST), which he considered more suitable for the people’s current income levels, while remaining open to adjustments to improve its implementation, including addressing cases of double taxation.

“If there are specific cases involving double taxation, those matters can be amended. I do not adhere rigidly to any single economic approach.

“The SST system can be maintained with one or two adjustments to improve its implementation,” he said.

He was responding to a question from Datuk Seri Dr Ronald Kiandee (Perikatan Nasional–Beluran) on whether the government’s decision against reintroducing the GST was driven by political considerations or economic factors.

In response to a supplementary question from Lee Chuan How (Pakatan Harapan–Ipoh Timor) on the SST’s effectiveness in boosting national revenue, Anwar said current SST collections amounted to 3.2 per cent of the Gross Domestic Product (GDP), comparable to GST revenue in 2017.

He also pointed out that reintroducing the GST would not necessarily guarantee higher government revenue, noting that about 2,000 items are exempted under the SST, compared with approximately 750 items when the GST was in place. – DayakDaily