LUMUT, June 15 — The government is not ready to reintroduce the Goods and Services Tax (GST) as it would affect all segments of society, particularly the poor, said Datuk Seri Anwar Ibrahim.
He said GST is a broad-based tax that would be applied uniformly to all consumers, regardless of income, including fishermen, smallholders, or street cleaners.
“GST taxes everybody. While it is efficient and straightforward — just six per cent across the board — I must ask, if everyone pays six per cent, why should the poor and unemployed be taxed as well?” he said when closing the Perak Madani Rakyat Programme (PMR) 2025 here today.
Anwar said that although the opposition has suggested GST as a better option, the government has chosen to postpone its implementation to avoid burdening the people, who are still struggling with the rising cost of living.
“That’s why we say we’re not ready for GST. If, one day, the economy improves and the minimum wage reaches RM4,000 or more, then by all means, implement GST.
"But for now, I’m calling for it to be postponed, don’t turn it into a political issue,” he said.
Anwar said the government is retaining the Sales and Services Tax (SST), which is more targeted in nature, particularly on imported luxury items such as avocados and cod, products typically consumed by high-income earners.
“Local bananas are not taxed, but expensive imported fruits like avocados, usually consumed by those in the high-income group, should come with a slightly higher price. The same goes for cod, which is also imported and costly, so we tax it,” he said.
As such, he said the tax revenue collected from these imported and high-end goods could be used to develop infrastructure that benefits the people, such as hospitals, schools, and the national defence system.
However, Anwar said the tax revenue collected by the government is not solely meant to cover the country’s operating expenditure, but also fund various development and welfare initiatives that directly benefit the people.
According to him, although there are weaknesses in the SST system, the government remains open to reviewing and enhancing it comprehensively in the nation’s best interest.
Engagement key
He said MPs should also adopt this approach to ensure local concerns are addressed more effectively and comprehensively.
“Even senior civil servants are requested to go to the ground, which is why we have initiatives like Sejati Madani and Kampung Angkat Madani. These enable senior officials, including ministers, to identify any disconnect between policy statements and their implementation at the grassroots level.
“When we engage at the ground level, we discuss issues like education, unemployment, drug abuse, healthcare facilities and economic projects. All these must be addressed thoroughly because the challenges reported may differ between federal and state levels,” he said.
Anwar stressed the importance of directly listening to the people’s grievances through initiatives like the Madani Rakyat programme or dialogue sessions between leaders and the public to gather feedback on areas needing improvement in development projects.
Citing examples, Anwar said he learned about issues such as damaged toilets in many schools and limited internet access in higher education institutions (IPT) through interactions with the public during community engagement programmes at eateries or Friday prayers.
He said such grassroots engagement allows the government to act swiftly in addressing these problems.
“We talk about artificial intelligence (AI), digitalisation, Microsoft and so on, but we still have broken toilets and no internet access. This is a major contradiction because while we want to prepare for an advanced future, basic infrastructure must be resolved first,” he said.
The three-day Perak PMR 2025 marked the second large-scale edition of the programme, held through strategic collaboration between the Performance Acceleration and Coordination Unit under the Prime Minister’s Department as the lead secretariat, and the Higher Education Ministry as the main implementing agency.
PMR 2025 is held in both large and small-scale formats, with the first large-scale edition held in Tawau, Sabah from May 9 -11.
— Bernama
