KUALA LUMPUR, Oct 29 (Bernama) -- The federal government will continue to implement the Sales and Service Tax (SST), as the Goods and Services Tax (GST) will not be considered due to the ongoing burden of the cost of living.
Govt Retains SST, GST Not An Option Amid High Cost Of Living - Amir Hamzah
Budget 2027, Amir Hamzah Azizan, Parliament, Suppl
BE Bernama 
Key takeaways
Malaysia's Finance Minister II stated that the government will retain the Sales and Service Tax rather than adopting the Goods and Services Tax to protect lower-income groups from regressive burdens. The administration plans to refine SST to simplify compliance and exempt essential items while maintaining affordability.
- The government rejected GST adoption because it disproportionately burdens lower-income B40 and M40 groups.
- SST collections are projected to rise from RM55.9 billion in 2025 to RM73.3 billion in 2027.
- Officials aim to improve SST by reducing cascading effects and allowing targeted exemptions for essential goods.
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- Bernama Govt Retains SST, GST Not An Option Amid High Cost Of Living - Amir Hamzah (this story)
