KUALA LUMPUR: The government will incorporate elements of the Goods and Services Tax (GST) into the existing Sales and Service Tax (SST) system to prevent cascading and double taxation, the Dewan Rakyat heard.

Deputy Finance Minister Liew Chin Tong said the government would retain the SST system while adopting GST elements that could improve the tax system.

"There are elements of GST, such as ensuring there is no cascading or double taxation in the system, which will be incorporated into the existing system.

"This means we will retain the SST system but take elements from GST to ensure there is no cascading effect in the system we have.

"Why do we want to continue with the SST system? Because it is easier for everyone to understand, and it has been in place for more than 50 years," he said in reply to a question from Datuk Seri Hamzah Zainudin (PN-Larut).