Perak: The government is not ready to reintroduce the Goods and Services Tax (GST) as it would affect all segments of society, particularly the poor, said Datuk Seri Anwar Ibrahim. The Prime Minister stated that GST is a broad-based tax that would be applied uniformly to all consumers, regardless of income, including fishermen, smallholders, or street cleaners.

According to BERNAMA News Agency, Anwar explained that while GST is efficient and straightforward at just six per cent across the board, it raises concerns about taxing everyone equally, including the poor and unemployed. He voiced these concerns during the closing of the Perak MADANI Rakyat Programme (PMR) 2025.

Anwar mentioned that despite the opposition's suggestion of GST as a better option, the government has chosen to delay its implementation to avoid adding to the financial burden of those already struggling with the rising cost of living. He suggested that GST could be considered in the future, should the economy improve and the minimum wage reach RM4,000 or more.

The Prime Minister indicated that the government would retain the Sales and Services Tax (SST), which targets specific goods, particularly imported luxury items like avocados and cod, typically consumed by high-income earners. He explained that local products such as bananas are not taxed, whereas imported expensive fruits and goods should come with a higher price.

Anwar emphasized that tax revenue from these imported and high-end goods could be utilized for developing infrastructure that benefits the public, including hospitals, schools, and the national defence system. He further stated that tax revenue is not only for covering operating expenses but also for funding development and welfare initiatives directly benefiting citizens.

In addition, Anwar acknowledged the weaknesses in the SST system but assured that the government remains open to reviewing and enhancing it comprehensively in the interest of the nation.