Kuala lumpur: The government will not adopt the core principle of the Goods and Services Tax (GST) as a broad-based tax but is open to making adjustments to improve the Sales and Service Tax (SST) implementation, stated Prime Minister Datuk Seri Anwar Ibrahim. Anwar, who also serves as the Finance Minister, emphasized that while some GST components could be considered, the overarching principle should not increase the tax burden on the poorest citizens.

According to BERNAMA News Agency, Anwar articulated his stance during a press briefing after the TikTok Shop Summit 2026. He stressed the government's commitment to avoiding broad-based taxes like the GST that could impact every citizen, including the financially vulnerable. His comments come amidst ongoing discussions on reforming Malaysia's consumption tax regime to enhance its progressiveness and efficiency.

Earlier, Anwar announced potential reforms, including reintroducing some GST aspects, to create a more effective tax system. Proposals have surfaced, suggesting a tax on electronic payment transactions and a return to GST to meet fiscal objectives. Malaysia transitioned to the SST regime in 2018 following public discontent over rising living expenses associated with the GST.

Anwar reiterated that the MADANI government's core principle is to shield the very poor from increased taxes. "We may consider adjustments to improve SST implementation or incorporate GST components, but the MADANI government's priority is to protect the poor from higher taxes," he affirmed.