Government to stick with SST and improve it, says MoF – GST not being considered due to high cost of living

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The government will stick with the sales and services tax (SST) and currently has no consideration for the goods and services tax (GST) due to the ongoing burden of the cost of living, reports The Edge.

Second finance minister 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 added that the SST 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,” Amir Hamzah said in parliament yesterday (October 29, 2026).