Proposal to re-introduce GST requires meticulous study - Muhyiddin

He said it was incumbent on the government to be meticulous in studying the effectiveness of the multi-stage tax system in contrast to the single tier consumption tax applied in Malaysia currently, which is the sales and services tax (SST), and the value-added consumption tax applied by many countries.

“Various aspects including strengths and weaknesses of the current SST, and the GST model that was introduced in 2014 must be taken into account to determine the viability of GST or any consumer tax model prior to it being implemented,” he said.

Muhyiddin said this in an interview with BERNAMA and local television stations here today.

He said the study was needed to determine the overall impact of such taxes if implemented, on the economy, the people’s cost of living as well as the ability of the taxes to combat black economy.

“I understand that there are those who are of the view that GST is a more efficient tax system and the collection is also bigger than SST. However, we have to study it meticulously.

“The Ministry of Finance had also looked into this matter but has not reached a decision. The government will announce once a decision is made,” he said.

He added that any form of consumer tax that is to be introduced must be simple to administer and not increase business costs.