Prime Minister emphasises need for income increase before GST implementation


PETALING JAYA: The Goods and Services Tax (GST) will only be implemented once Malaysians’ income levels rise to a more comfortable threshold, says Datuk Seri Anwar Ibrahim.

“I agree it is the most transparent, efficient system. All the big companies want GST. But please remember, I said yes, but let the level of income, the threshold, rise up first,” he said.

Anwar said this in his speech at the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) 78th annual general meeting here on Sunday (Oct 13).

The Prime Minister said that introducing GST now would mean equally taxing everyone, from the rich to the poor.

He described the approach as contrary to his political philosophy and conscience.

Anwar said implementing GST must follow an increase in income levels, with a minimum threshold of RM3,000 to RM4,000. He added that this was what other nations that had successfully implemented GST did.

He said this would ensure that the tax is introduced equitably, ensuring that the poorest in society are not disproportionately affected.

Anwar also said that broader economic reform was needed, and corruption and misuse of political office in Malaysia must be addressed before the introduction of GST.

He noted that the rampant corruption seen in the past must be curbed to ensure a fair and just economic environment.

Meanwhile, commenting on the upcoming Budget 2025, Anwar said in addition to business and economic opportunities, SMEs and MSMEs would be given special attention as outlined in the Madani economic framework.

“We will also ensure that weaknesses in the administration are addressed, with our newly appointed Chief Secretary to the Government focusing strongly on these issues,” he said.

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