Reintroduce flat-rate GST in Sabah, urges accountants association
By SANDRA SOKIAL
Sabah & Sarawak
Thursday, 12 Jun 2025
8:58 PM MYT

KOTA KINABALU: The government is being urged to consider reintroducing a simplified Goods and Services Tax (GST).

This proposal arises from concerns that the upcoming expansion of the Sales and Services Tax (SST) could burden businesses and consumers, especially in Sabah.

The Sabah Association of Professional Accountants (SAPA) suggested a flat-rate GST set at 3% to offer a fairer, more transparent, and efficient taxation model that could ease administrative burdens and reduce cost layering across industries.

"We believe a modern GST system, with basic exemptions and simplicity, would better serve Malaysia's fiscal goals while protecting the vulnerable," stated SAPA president Datuk Tan Kok Liang on Thursday (June 12).

SAPA expressed concern that the SST expansion, effective July 1, could disproportionately impact Sabah's fragile economy.

The inclusion of construction services and commercial property leases under SST could lead to higher project and rental costs, particularly in rural and semi-urban areas.

"In Sabah, infrastructure gaps and higher logistics costs already affect businesses. Adding tax pressure in areas like construction and shoplot rentals will further discourage investment and growth," said Tan.

He noted that small and medium-sized enterprises (SMEs), considered the backbone of the state's economy, risk bearing the brunt of these changes, with higher costs likely passed down to tenants and consumers.

Tan acknowledged positive elements in SST, welcoming exemptions such as residential property rentals, basic goods like rice and medicines, and the exclusion of private healthcare for Malaysian citizens.

"These are thoughtful measures that protect lower- and middle-income groups from unnecessary financial strain," said Tan, adding that such exemptions demonstrate the government's effort to balance revenue and social protection.

The association argues GST offers advantages over SST, including input tax credits that avoid cascading costs, better audit trails, and stronger alignment with international tax standards, crucial for boosting investor confidence.

Tan said a simplified GST system could be tailored to Malaysia's needs and implemented without affecting essential goods and services.

"A well-designed GST would be more equitable and sustainable in the long term, likely less burdensome to consumers than the current dual-rate SST," he said.

SAPA also raised concerns about mandatory e-invoicing, noting many businesses, NGOs, and religious institutions in Sabah may lack the technical capacity or infrastructure to comply.

Tan mentioned that a reintroduced GST would incorporate invoice tracking, making a parallel e-invoicing system redundant for compliance purposes.

The group urged policymakers to adopt a more inclusive and consultative approach in tax reform discussions, especially considering regional disparities between Peninsular Malaysia and East Malaysia.

"We are ready to work with the government through technical consultations to ensure Sabah's unique economic circumstances are properly represented," Tan said.

Source: https://www.thestar.com.my/news/nation/2025...nts-association

Easy to ask others implement. Put your name on it and run the next election promising GST implementation then you can implement yourself.

Even MCA and Najib also won't dare put "I will implement GST if I win" as their tagline.

This post has been edited by Mixxomon: Jun 13 2025, 11:41 AM

Fucking Najib really ruined things with the GST. If they didn't just keep all the input tax credits and paid them back like how things were supposed to work it might not have got as bad a reputation as it should have.

PH1 also screwed things up by not making it clear what the problem was with the GST and refunds, still remember LGE saying "refunds stolen from the account" and all the cybertroopers then stuck on the word 'stolen' and that became the sole discussion point instead of the breakdown and wrong implementation of GST.

Its hard to take it seriously when Sabahan talk about money haha

Support PN to push for GST.

yup GST easier job for accountant, while still taking same (or more) salary..

Coz u think they are rich?

Niama remove subaidy for eggs also make oise like whole family die.

Wanna add new tax got ppl say tq and we have been waiting for it like a saviour? Mai siao lah

Maybe just GST in Sabah. No need waste time.


Meanwhile 0% SST/GST in Sarawak.

na just poking about state level money management issues

Should allow each state to collect separate tax like US.

See who got balls.

Let S&S set their old tax lor...

In the US, every state has its own tax rate.

Yeah. its better such isnt it? Why Madani Bodo? Want stupid centralized taxation.

After all such taxation is deem failure when they dont have comprehensive framework and make certain places like future SJFTZ imbalance.

3% lel.
cakap la want lesser taxes, senang.

Gawd no.

Doing business would be a nightmare. This state 0%, that state 7.25%, third state 12%.

No one who has ever lived in the US (or Canada) thinks that each state/province having their own consumption taxes is a good thing.

Gst 3% tak ada. Gst 10% ada. Still want?

TBH, I'd take a single 10% GST than the mess of 5%, 6%, 8%, 10% SST rates, trying to work out whether it is 5% or 10% rate for LVGT, and faffing on whether the HVGT should be 5% or 10%.

leaders wont be affected by whatever tax duh

what is being raised mostly concern average citizen

Since when gst is across the board? There is standard rate, zero rate and exempt and reverse charge. It is just as messy.😈

The idea and concept is good, I am all for the implementation IF the execution is done well. If you're in the business, you'll know what I mean. Getting back the input tax is like hoping to strike lottery.