Lumut, June 15, 2025 – The Europe Today: Prime Minister Datuk Seri Anwar Ibrahim reaffirmed the government’s firm stance against reintroducing the Goods and Services Tax (GST), stressing that such a move would unfairly burden lower-income groups, including the unemployed, fishermen, smallholders, and street vendors.
Speaking at the closing ceremony of the Madani Rakyat programme held at the Lumut Waterfront, Anwar acknowledged that while GST is often seen as a systematic and easy-to-administer taxation model, it lacks fairness due to its broad-based nature.
“GST applies across the board—even to sugar, flour, and other basic food items. Everyone pays, including the poor and unemployed, just to meet daily needs,” Anwar stated. “Is it fair for the poor to be taxed just to eat?”
His remarks came in response to persistent calls from opposition lawmakers who advocate for GST as a more efficient alternative to the current Sales and Services Tax (SST).
The Prime Minister emphasized that SST is a more targeted approach, taxing luxury and imported items rather than essentials. “People complained when imported bananas were taxed. But we are not taxing local varieties like pisang mas or rastali. It’s imported bananas, avocados, and codfish—consumed largely by the affluent—that are subject to SST,” he explained.
Anwar also defended the role of SST in supporting national development. “Taxes fund hospitals, schools, roads, and even the procurement of aircraft for our Armed Forces. These are not luxuries; they are necessities,” he said.
Addressing concerns over electricity tariff increases, Anwar pointed out that 85% of consumers have not experienced any hike, noting that any adjustments were limited to higher-usage categories typically associated with wealthier households.
“So those who claim they are defending the Malays and Islam—who are they really defending? The rich? Because the villagers did not see their bills rise. The rich did,” he added.
While acknowledging that no tax system is perfect, Anwar welcomed constructive feedback and dialogue. “I am not saying SST is flawless. If there are concerns affecting businesses, we can sit down, discuss, and improve. But people must understand the necessity of taxation for nation-building.”
Anwar concluded by stating that GST could only be considered in the future under specific economic conditions—when the economy is stronger and the minimum wage exceeds RM4,000.
