MALAYSIA. KUALA LUMPUR, June 17, 2025 — The Malaysian government’s decision to expand the Sales and Service Tax (SST) has drawn sharp criticism, with over 90% of previously exempted goods now taxable, including basic necessities like sugar, salt, fish, vegetables, and fruits. Of the 8,094 items previously exempt, only 1,813 remain untaxed, placing a heavier burden on ordinary citizens.
Tan Sri Muhyiddin Yassin, Chairman of Perikatan Nasional, slammed the move, questioning the Madani government’s tax policy.
“The claim that the Madani government taxes the ultra-rich to redistribute to the poor, like Robin Hood, is mere theatrics,” he said, calling the policy a “blatant lie.” He highlighted that everyday items like apples, bananas, and oranges—staples for the average Malaysian—are now taxed, dismissing the notion that these are luxury goods.
The SST expansion is projected to generate an additional RM10 billion in revenue, but Muhyiddin questioned its necessity and transparency.
“Why wasn’t this delayed until Budget 2026 for parliamentary debate?” he asked, noting the lack of clarity on how the funds will be spent. He accused the government of “squeezing the people” to address fiscal challenges, a move he claims is unprecedented.
This follows recent economic pressures, including the diesel subsidy cut, last year’s SST rate hike, and looming electricity tariff increases and RON95 subsidy adjustments. Muhyiddin warned that these cumulative measures will disproportionately affect the bottom and middle 85% of Malaysians, exacerbating the cost-of-living crisis.
Pointing to economic mismanagement, Muhyiddin argued that the government’s failure to boost national revenue has led to “leech-like” policies that tax citizens while slashing subsidies. He urged the cancellation of the SST expansion and electricity tariff hike, proposing alternative fiscal solutions.
Citing Tenaga Nasional Berhad’s (TNB) RM1.04 billion net profit in Q1 2025—a 53.5% increase year-on-year—Muhyiddin questioned the need for higher tariffs. He also called for a review of the Goods and Services Tax (GST) as a potentially less burdensome alternative to the current SST framework, emphasizing that GST’s impact was less severe than the present system.
In a pointed remark, Muhyiddin reminded the Prime Minister, also the Finance Minister, that GST refers to the Goods and Services Tax, not “General Services Tax,” expressing disbelief at the apparent confusion.
“The government’s duty is to ease the people’s burdens, not add to them,” Muhyiddin said. “If it cannot fulfill this basic responsibility, the Madani government has failed and deserves to be rejected.”
