KUALA LUMPUR, Oct 29 — 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.

Finance Minister II Datuk Seri Amir Hamzah Azizan said the government would continue to improve the SST to reduce the impact of cascading taxes and simplify compliance.

He said the SST also provided room for a more progressive and targeted approach.

“The government can choose which goods and services to tax while exempting essential items. Although some of the tax may be passed on through prices, the scope of taxation can be determined with the people’s affordability in mind,” said Amir Hamzah during the Supply Bill (Budget 2027) policy-level winding-up debate for the Ministry of Finance (MoF) in Parliament today.