Malaysian Prime Minister Anwar Ibrahim previously said in an announcement last month that the Malaysian government will not be re-introducing the Goods and Services Tax (GST), according to Channel NewsAsia.
He reiterated the point once more in a recent parliament sitting, explaining that Malaysia is not ready for GST because of the people’s low income.
He said that the current Capital Gains Tax and Luxury Goods Tax are suitable alternatives instead.
No GST for the next 6 months
Speaking in Parliament on 14 March, Anwar said that the Malaysian government will not be bringing back GST, responding to a question by Tanjong Karang Member of Parliament (MP) Dr Zulkafperi Hanapi.
Hanapi had asked about the reintroduction of GST after the upcoming 6-state elections, to which Anwar said that the people’s income levels must increase first before they can bring it back.
Anwar said that the level of income of the people is still low, and he doesn’t think that in the next 6 months or a year, they will consider it.
He added that there are more than 130,000 Malaysian citizens in the bottom 40 per cent income group and living in hardcore poverty, citing it as one of the reasons why Malaysia is not ready for GST.
Anwar used Singapore, Canada and New Zealand as examples and compared Malaysia to these countries, saying that they have a long way to go before they can meet the minimum income levels for their people.
He said that the Capital Gains Tax and Luxury Goods Tax are more than enough for Malaysia to get extra income, and that those two taxes will also help the country get rid of tax evasion.
Anwar was also quoted by The Star as saying that “It’s the rich towkays that often evade tax… There should not be any compromise on this in ensuring that the rich pay their taxes”.