KUALA LUMPUR (Sept 12): Datuk Seri Dr Wee Ka Siong, the Member of Parliament for Ayer Hitam, has expressed support for the reintroduction of the goods and services tax (GST), given that it is proven to be one of the most effective methods for enhancing government income.

However, he acknowledged that there were certain flaws when the GST was initially introduced in 2015 during the Barisan National regime.

Wee proposed that the reintroduction of the GST be accompanied by several improvements, including the creation of an exemption list, zero-rated supplies, and providing financial assistance to low-income individuals, all funded by increased government revenue.

"It has been suggested that the 6% rate was too high. We can always reduce it to 4%, and implement it in phases," he said when debating the 12th Malaysia Plan's Mid-Term Review in the Dewan Rakyat.

"While the economy minister once called upon the people to oppose the GST, I felt relieved when the minister mentioned that he is considering its reintroduction. Let us put the past behind us, and bring back the GST for the sake of the country," Wee stated.

Economy Minister Mohd Rafizi Ramli reportedly stated on Monday that the government is open to reintroducing the GST as one of its strategies to broaden its revenue base and achieve fiscal sustainability.

However, Datuk Seri Anwar Ibrahim in March stated that Malaysia is not ready for the reinstatement of the GST anytime soon. The prime minister reiterated that household incomes and thresholds must first be increased to a reasonable level before the GST can be reintroduced.

The GST replaced the sales and service tax (SST) in April 2015, but was then scrapped in favour of bringing back the SST in September 2018, when the Pakatan Harapan government came into power.

Many economists have stressed that Malaysia needs to strengthen its very narrow revenue base, and one of the best ways to achieve this is through the implementation of the GST.

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