GST can only be reintroduced with Parliament approval - Zafrul

The Goods and Services Tax (GST) can only be re-implemented with the approval from Parliament, said Finance Minister Tengku Zafrul Abdul Aziz.

"Any new tax must be approved by the cabinet and then tabled in Parliament.

“Before the dissolution of the Parliament, there was no cabinet approval regarding GST," he told reporters in Kuala Selangor yesterday, according to Bernama.

Zafrul (above) said this in response to claims by Pakatan Harapan leaders that GST will be reintroduced after the 15th general election.

Elaborating, he said at least 160 countries in the world have implemented GST and admitted the tax system was more efficient and able to reduce leakage.

"Our current tax to gross domestic product (GDP) ratio is around 11 percent, which is relatively low. This shows that what we have now is not efficient.

"(However,) this does not mean that we will introduce a new tax in the near future. What is important is the tax imposed does not burden the people and can be used to develop the country," he said.

The GST at six percent rate was introduced on April 1, 2015, before it was abolished and replaced with the Sales and Services Tax starting Sept 1, 2018.

The current sales tax rates are between five and 10 percent, while the service tax rate is at six percent.

GST was highly unpopular when it was implemented by the Najib Abdul Razak administration as it was applied on most goods and services.

Earlier this month, Zafrul had hinted that the cabinet will eventually discuss whether to implement GST and the main consideration was the state of the economy next year.

Power of voters will determine Budget 2023 approval - PM

'Have no fear, govt has provision to implement Budget 2023'

Dzulkefly to defend Kuala Selangor seat, Amanah decides

Finance Ministry: Pensioners to get cash aid in January, Aidifitri aid in March

Zafrul: 6 telcos signed 5G access agreement with DNB