KUALA LUMPUR – Ayer Hitam MP Datuk Seri Wee Ka Siong has questioned the Finance Ministry’s (MOF) reasoning for not reinstating the goods and services tax (GST) on grounds that it is broad-based and that Malaysians’ income remains low.
He argued that if GST is considered broad-based, then the current sales and service tax (SST) is also broad-based, and creates a “cascading effect” of double taxation.
“If the government acknowledges that incomes are still low, then why raise the SST rate from 6% to 8%?” he questioned.
“Why introduce new taxes such as the 8% digital services tax (DST), the 10% low-value goods tax (LVGT), the 10% capital gains tax (CGT), carbon tax, the 2% dividend tax, as well as higher passenger service charges (PSC) and increased stamp duties?” he wrote on his Facebook page today.
The MCA president also questioned why the MOF’s Fiscal Outlook and Federal Government Revenue Estimates 2024 report concluded that GST is less burdensome on the public compared to SST.
“Does the Finance Ministry intend to withdraw and revise this report?” he asked further.
Wee pointed out that the Federation of Malaysian Manufacturers (FMM) previously claimed that nearly 97% of goods are now subject to tax.
“Based on the answers I received, the ministry seems to be too ‘fond’ of the SST system compared to GST, which is more efficient and transparent, and is implemented in over 170 countries worldwide,” he said.
Nevertheless, he reiterated his stance that GST is superior to SST and urged the government to reconsider implementing an improved version of GST. – August 27, 2025