Credit : Datuk Seri Anwar Ibrahim's X
Prime Minister Datuk Seri Anwar Ibrahim says the MADANI Government has chosen to keep the Sales and Service Tax (SST) rather than return to the Goods and Services Tax (GST), because the priority is to make sure the people, especially low-income groups, are not burdened by taxes.
In a post on his X account on November 12, 2026, Anwar wrote in Malay that “our priority is to ensure that the people, especially low-income groups, are not burdened with taxes.” He said that was why the Government opted to retain SST over GST, which he described as a tax that applies more broadly.
“We want a tax system that is fair and takes into account the people’s ability to pay,” he said. “For me, managing national revenue is not only about collection, but about making sure the people continue to be looked after and that their lives do not become more burdened.”
What he told the Dewan Rakyat
The post followed Anwar’s remarks during Ministerial Question Time in the Dewan Rakyat on November 12, 2026, as reported by Bernama and other outlets. Anwar, who is also Finance Minister, said GST is a broad-based tax that falls on everyone regardless of income, while SST is a tax on businesses, although a small portion is passed on to consumers.
He said those pushing for GST were effectively proposing to shift the tax burden from businesses and exporters to the public as a whole. “I do not understand why those claiming to champion the people want to impose a tax on everyone,” he said, according to Malay Mail.
The figures he cited
Anwar said about 2,000 types of goods and services are exempt under SST, compared with fewer than 750 under GST. He also said SST revenue now accounts for 3.2 per cent of gross domestic product (GDP), the same proportion recorded by GST revenue in 2017, which he used to dispute claims that bringing GST back would necessarily raise more revenue.
According to the Radio Televisyen Malaysia (RTM) report, he also noted that GST in 2018 involved about 700,000 businesses, compared with about 130,000 businesses under SST today.
Incomes and the cost of living
Anwar said a review of GST should only be considered once the people’s minimum income has risen to at least RM4,000, so that a broad-based tax does not place an undue burden on lower-income households. He pointed to many people who still earn between RM1,500 and RM2,000 a month, telling the House that imposing GST on such incomes would add to their burden, according to Utusan Melayu Plus.
“The Government believes that the cost of living remains a burden on the people, and as long as their incomes have not reached a reasonable level, it would not be appropriate to reintroduce GST,” Malay Mail quoted him as saying.
Open to improving SST
Anwar stressed that his stance was not political. He said the system would remain SST, but the Government was open to adjustments, including for cases of double taxation raised by industry. “I am not dogmatic about economics,” he said. “The system will remain SST, but with some adjustments to improve it. Why not?”
Replying to another question, from Pendang MP Awang Hashim, Malaysiakini reported that Anwar said the Government was willing to study any proposal paper submitted to defend GST, but for now its position is that the tax is not suitable to be reintroduced.
Awang had argued that GST could reduce black economy activity. Anwar acknowledged that GST has advantages in the transparency of price monitoring, but said the effect on consumers remains his main concern.
Source: https://x.com/anwaribrahim/status/2120749466890416374
Credit : Datuk Seri Anwar Ibrahim’s X
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