{
    "success": true,
    "data": {
        "id": 1926092,
        "msgid": "malaysia-considering-consumption-tax-reform-prime-minister-anwar-1787035836",
        "date": "2026-08-18 13:16:00",
        "title": "Malaysia considering consumption tax reform: Prime Minister Anwar",
        "author": "",
        "source": "CNA",
        "tags": "Asia ,Business",
        "topic": "Economy",
        "summary": "Malaysian Prime Minister Anwar Ibrahim has signalled the government is exploring a more progressive and efficient consumption tax system, potentially combining elements of the previously scrapped goods and services tax with the current sales and services tax. He acknowledged the GST was the most transparent collection method but expressed concern over its impact on the poorest citizens. The reform discussion comes as targeted subsidies have yielded significant savings, with the 2027 budget expected to address cost-of-living pressures and investment growth.",
        "content": "<p>Malaysia considering consumption tax reform: Prime Minister Anwar<\/p>\n<p>Malaysia previously scrapped the goods and services tax amid an\noutcry over rising living costs.<\/p>\n<p>KUALA LUMPUR: Malaysian Prime Minister Anwar Ibrahim said on Tuesday\n(Aug 18) the government was considering reforming its consumption tax\nregime to make it more progressive and efficient, including potentially\nreintroducing aspects of a broad-based goods and services tax (GST).<\/p>\n<p>Malaysia scrapped the GST, which was set at 6 per cent, in 2018 amid\nan outcry over rising living costs, replacing it with a narrower sales\nand services tax (SST). Some analysts have called for the GST to be\nrevived so the government can achieve its fiscal targets.<\/p>\n<p>Anwar, who is also finance minister, said he considered GST to be the\nmost transparent and efficient system of tax collection, but was\nconcerned about the impact on the poorest segments of society.<\/p>\n<p>The government could not retain the current SST regime due to\nweaknesses in the system, he said, without providing details.<\/p>\n<p>\u201cSo we need to see how we can combine these two systems to find a new\nway to determine a more progressive and efficient taxation system,\u201d he\ntold a finance ministry event.<\/p>\n<p>\u201cIt is a major challenge, it has to be done. But it is not simple \u2026\nwith rising poverty rates and rising costs of living.\u201d<\/p>\n<p>The government said in 2024 it had no plans to reintroduce the GST as\nan alternative to removing subsidies for petrol. Last year, it\nintroduced a quota for purchases of subsidised RON95 transport fuel, as\npart of an effort to replace blanket subsidies with a more targeted aid\nsystem.<\/p>\n<p>In a pre-budget statement released on Tuesday, the finance ministry\nsaid targeted subsidies had generated around 15.5 billion ringgit\n(US$3.8 billion) in savings a year, helping the budget absorb a\nballooning subsidy bill due to higher energy costs from the Middle East\nconflict.<\/p>\n<p>The government is expected to present its budget for 2027 in\nparliament on Oct 9, the ministry said.<\/p>\n<p>The budget is expected to be framed around 10 focus areas, including\nnarrowing regional development gaps, addressing cost-of-living\npressures, and boosting investment growth, it said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/malaysia-considering-consumption-tax-reform-prime-minister-anwar-1787035836",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}