A Progressive Tax System: Malaysia's GST Dilemma Malaysia's Prime Minister Anwar Ibrahim has announced plans to reform the country's consumption tax system, sparking renewed debate over the merits of a goods and services tax (GST).
Some analysts have long advocated for the reintroduction of the GST as a way to achieve fiscal targets, while others remain skeptical about its impact on the poor. The controversy surrounding the GST is not new.
When Malaysia scrapped it in 2018, critics argued that the decision was motivated by a desire to shield consumers from rising living costs, rather than any principled objection to the tax itself.