KUALA LUMPUR (Sept 11): Umno president Datuk Seri Dr Ahmad Zahid Hamidi has called for the return of the goods and services tax (GST), dismissing a hybrid system of the GST and current sales and service tax (SST) system.
Zahid said no country in the world uses a hybrid of the GST and SST, and called on guru (teacher), referring to Prime Minister Datuk Seri Anwar Ibrahim, to listen to the voices of the people.
“Change taxation back to the GST system. There is no such thing as a hybrid; there is no country that has a hybrid GST plus SST,” he said in his presidential address at the 2026 Umno general assembly on Friday.
“Guru, listen to what the people are saying!” he said amid loud applause and chants of agreement from Umno delegates.
Zahid said former prime minister Datuk Seri Najib Razak had “done it right” when he implemented the GST in 2015. The consumption tax was suspended and subsequently abolished in 2018 by the Pakatan Harapan 1.0 government.
“We are determined, God willing, to bring back the GST at a more reasonable rate. Agreed?” Zahid posed to delegates, who responded “Agree!"
Last month, Anwar said the government was studying improvements to the SST, including incorporating elements of the GST, to develop a more progressive and efficient tax system.
Anwar had conceded that GST is transparent and efficient, but noted that its broad-based nature would affect lower-income households.
He said the government's core principle is to not increase the tax burden of the poorest segment of the population.
Zahid also criticised Anwar for flip flopping on the monthly quota of subsidised RON95 petrol for Malaysians.
“First it was reduced, and when elections were around the corner, it was increased again. Who did this? Guru. Enough is enough, Guru. Listen to our voices, listen to the people,” he said.
Malaysia had cut the monthly quota of subsidised RON95 petrol to 200 litres on March 26, about a month after the US and Israel starting bombing Iran, which pushed global oil prices to over US$100 a barrel from about US$60-US$70 before hostilities began.
At the time, the government said the monthly fuel subsidy bill had ballooned from about RM700 million to over RM3 billion.
The quota was returned to 300 litres a month on Aug 30, when there was a lull in the fighting and oil was trading about US$85-US$95 a barrel.
At time of writing, fighting has flared again and Brent Crude is back to over US$100 a barrel.