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.

flat-rate GST set at 3%

cool story

start at 3% and then raise it lol

The reason why a lot of ppl prefer gst including
Me because we can create bills out of thin air without submitting tin number / ic / registration etc

Though gst will actually cost more compare to sales tax one time off while gst is tax every transaction

With einvoice u can’t just issue a bill out putting cash if the sum is huge , u need to give a Tin number or ic

Reason doing this , gov want to trace your money where it’s from and where it goes

tak tau buat kerja bg la PN

Sure GST doesn't mean one rate. There are countries with different rates of GST for dfferent things.

I'll still take 10% GST with some exceptions (fresh food, medical care, etc) than the current situation of 5%, 6%, 8%, 10% SST rates.

Nah

The problem with refund as admitted by Tony Pua is the customs dept is shorthanded

But instead of fixing this, they decided to abolish it as their businesses core supporters dont like GST as it will be very hard for businesses to under reported their earnings and pay less tax. Not to mention money laundering will be harder

Another Seisohai, Urges State Government to overtake Federal to make decision.

Study until brain damage.

support

Najib did implement it and it cost him a lot of votes. I give him credit for that.

Then some idiot, instead of modifying it, went to abolish it. Only to make tax evaders happy at the expense of everybody else.

Pretty sure getting involved in 1MDB scandal cost him more votes. What for collect more taxes and end up wasting it.

nahh, its the damn GST. many people dont give shit about 1mdb. as if it not going to affect them in the future.

This post has been edited by zerorating: Jun 13 2025, 03:36 PM

Haha until today the Najib ass kissers in this forum will say nothing wrong with GST and the input tax refunds going missing is a myth.

Despite all the evidence to the contrary, they know better than the customs DG even.

If you're a fan of GST you should hate Najib more than if you're not a fan, he fucked it up and it may never be implemented again whether properly or not.

Therefore they are just as messy.

He implemented GST to cover the hole caused by 1mdb which is also why refunds were delayed.

Abrupt SST burdens livelihoods, MBKS Mayor proposes education, healthcare exemptions, GST revival
By Karen Bong

KUCHING, June 14: With just weeks to go before Malaysia’s expanded Sales and Services Tax (SST) takes effect on July 1, Kuching South City Council (MBKS) Mayor Dato Wee Hong Seng has voiced strong concern over its sudden rollout — particularly its potential impact on education and healthcare, questioning whether the federal government should instead consider reviving the Goods and Services Tax (GST) as a more balanced and transparent alternative.

Wee warned that the abrupt expansion of the SST could trigger a domino effect, squeezing small and medium enterprises (SMEs), driving up the cost of living, and worsening the economic pressures already felt by ordinary Malaysians.

“Every tax-related decision has a ripple effect. If the economy was booming, maybe it’d be easier. But go ask around — not one hawker or small trader will tell you business is good. So if businesses collapse, jobs are lost. That’s the real danger,” he shared during his weekly ShallWeeTalk Facebook live session with the community today.

According to the federal government, the expanded SST between 6-8 per cent is aimed at increasing national revenue by widening the scope of taxable goods and services. But Wee questioned the timing, planning, and clarity of the move, stressing that the lack of consultation and short notice are out of touch with economic realities on the ground.

“When drawing up a national budget, careful calculation and preparation are crucial. If new policies are introduced before people have even had time to adapt to the last ones, they’ll be overwhelmed. This drains the public — and that’s not good governance.

“Of course, the government needs revenue. But it must strike a balance — to protect SMEs and maintain stability in people’s daily lives. When tax burdens are passed down the supply chain, the consumer always ends up paying. We cannot treat taxation as merely a fiscal tool — it must reflect fairness and good governance. Only then will people accept it,” he stressed.


Wee sharing his views on some issues during his ShallWeeTalk Facebook live session on June 14, 2025.

He added that the sudden announcement was creating uncertainty and chaos in the market.

Wee urged federal authorities to consider reintroducing the GST, which was abolished in 2018, noting that while it had its flaws, it remains a more structured and equitable system — especially if implemented with proper planning and reasonable rates.

“GST is one of the most democratic tax systems — it distributes the burden fairly and allows for better planning. It’s recognised globally. So why are we avoiding it?” he asked, calling for policies grounded in long-term effectiveness, not political optics.

The Mayor also pointed to growing frustration among the public, saying many feel blindsided by the policy shift. He cited cases where local goods are now more expensive than imports, undermining local producers and further straining households.

“We say we want to support local agriculture — yet local dragon fruit sells for RM10 while the imported ones go for RM8. Where’s the logic? If tax policies don’t help correct that, but instead add to the cost, what are we doing?”

He called for education and private healthcare services to be exempted from the SST, noting these are essential sectors that already burden lower- and middle-income families.

“Even if you’re poor, you can’t be poor in education. And healthcare is a necessity. When public hospitals are full, people turn to private clinics — don’t punish them for that,” he said.

Wee also questioned whether the government had explored sufficient cost-cutting measures before shifting the financial burden onto the public.

“If you’re not making money, don’t spend like you are. The government should lead by example — trim unnecessary expenses before asking the people to pay more,” he added.

He called on federal leaders to delay implementation, conduct proper stakeholder engagement, and show real empathy for everyday struggles before enforcing any major tax reforms.

“Don’t use taxation purely as a fiscal tool — use it as a reflection of your leadership. If people see the system as fair and stable, they’ll support it. But if they feel punished, you’ll lose their confidence — and that’s far harder to rebuild,” he said.

Wee ended his remarks with a plea for common sense, empathy, and leadership in shaping Malaysia’s tax policy. “If a system works, don’t throw it out just because it wasn’t yours. Bring back GST — but do it right this time.” — DayakDaily

Source: https://dayakdaily.com/abrupt-sst-burdens-l...ns-gst-revival/

SIAPA?

SST+e invoice+expanded SST is just another GST with more detailed steps

Mesia tax to GDP ratios among the lowest in the world. Some more need to give subsidi/tongkat to all sorts of things.

Where got money to develop?

But without collecting the same amount/volume of tax

That’s where the expanded SST comes in

If they feel like still tak cukup, they’ll just expand more.

And state gomen will pay gaji for all the guru doctor nurse abam polis jkr anneh etc etc working in the states and will not ask federal gomen for bantuan? Please go ahead.

At least sst is single tier tax not like gst need to wait for refund for input tax

This post has been edited by yeapsc73: Jun 15 2025, 10:44 AM

https://forum.lowyat.net/index.php?showtopi...ost&p=111757819

Rokek like to lie and fitnah

GST is a single tier tax

SST is a multi tier tax

#BebasNajib
#NajibForPMXI

U serious sst is multi tier?

Gst is economically single tier at the consumer end, but physically multi tier because from manufacturers to distributers to retail shops to consumers, each tier will have input/output tax.

No wonder bijan rotten in jail becoz having supporters in such calibre. I tak tahu macam mana duit masuk bank akaun aku, bukan salahan saiya, sumua fitnah.

Later gomen introduced 10% Semua bising jugak lol

Now it is like witcher 3 senario , anwar need come up with something to defend himself otherwise risk of by election / snap election soon

All the business man, politicians, noble seek to oust him

Sos kicap?

Gomen should implement all revise tax subsidi etc this year. Then next year double the bantuan rakyat for b40, and 2026 double again, rakyat mudah lupa and will praise pmx prihatin and vote for him next ge

Time to vote Sabahan for PM

SST can have double taxations or more along supply chains
especially if <RM500k/annum revenue companies
and managing these exemptions along supply chain to avoid double taxation, is a mess

Just hunch feeling only.

guan-eng-admits-gst-more-transparent-than-sst

Rokek bestest FM accountant from Monash University Australia already say GST is more transparent and efficient than SST

Rokek like to lie and fitnah

Najib banyak berjasa kepada Rakyat dan Negara

#BebasNajib
#NajibForPMXI

We are taking about tiers here

Aiyoo let's putar.. Halim

Topkek idiot bijan supporter

Sst only tax at manufacturer or importer end, once only, no?

If u beli barang from kedai kena charge sst please report

kek
they don't write 5% in receipt
they mark up as lump sum

Mark up not equivalent to tax just more untung. I can mark up 1000% if still got idiot buying

Sound better idea. Instead you wait FOR FEDERAL. WAIT FOR STATE, the KEBODO-NESS of waiting and wasting time when necessary to be done.


This post has been edited by Syie9^_^: Jun 15 2025, 12:39 PM

Architect of GST is = Australia. Monash Malaysia program belongs to Australia.

Anything is possible.

This is No. 1 lies during GST implementation. This is 2025 and you still repeating that?

Every GST got REFUNDED except the last transaction.

Instead getting Malaysia bankrupt is better? You don't know Malaysia actually went insolvent in the 90s? How old are you?

Now the real ass kisser is uncovered. You didn't know PH has OFFICIALLY announce no GST missing? You didn't get the memo? Try Google.

Don't know. Life moves on.
You seem to know a lot, you should do a nation wide tour on this, rather than focus on this limited online platform.

Share link lah, why so malas ask people google. You make the claim, you have to provide evidence for it.

https://www.mof.gov.my/portal/arkib/press/M...%20purposes.pdf

^ Official release from MOF. We were always talking about how the refunds were rerouted, in contradiction to the GST Act 2014. This is the implementation issue, all the money which should have been in the GST Refunds account was missing, hence no one got the refunds they were supposed to get.

Also "no GST missing" ... you got read the post chain you responded to or not? Wtf does "no GST missing" even mean? Nah I'll reproduce it here because I'm not lazy.

I guarantee you're doing the thing I was first talking about here, trying to harp on the "no money was stolen!!!!!!!" wording to distract from the REAL implementation issue everyone and their mother admitted happened, but people like you try to pretend didn't happen

How many years already, either you stupid and dont understand or buat tak tahu. Money was 100% missing from the account it should have been in, because it was rerouted to an account which it shouldnt have been in, in contravention to the act that Najib's own government passed and subsequently did not follow. Now show us where any of this is wrong. You can't. So either educate yourself or stfu.

SST expansion a negative for consumer industry
Economy
Tuesday, 17 Jun 2025

PETALING JAYA: The upcoming expansion of the sales and service tax (SST) is expected to weigh in on the local consumer sector amid rising cost pressures, says RHB Research.

The research house said the imposition of a 5% to 10% sales tax on selected non-essential goods and an 8% tax on additional taxable services could have both direct and indirect implications for the sector.

“We believe this is negative for the sector as it will weigh in on consumers’ spending power and further dampen the already subdued consumer sentiment,” said RHB.

Retailers with a significant mall footprint, such as Padini Holdings Bhd, Focus Point Holdings Bhd, Aeon Co (M) Bhd and MyNews Holdings Bhd, are more exposed to the risk of landlords imposing higher rental expenses to pass on the SST costs.

Under a worst-case scenario where the 8% service tax is fully applied to all rental charges in mall locations and passed entirely to tenants, RHB Research estimated earnings sensitivity could range between minus 5% and minus 22% for these retailers.

In contrast, companies operating primarily in non-mall locations, such as 99 Speed Mart Retail Holdings Bhd and MR DIY Group (M) Bhd, are expected to be less impacted, as many of their premises fall below the SST taxable threshold.

As for food and beverage (F&B;) manufacturers, the impact is likely to be minimal.

RHB Research noted that most newly taxed items under the revised SST, such as imported premium food and luxury goods, do not fall within the core raw materials or product offerings of the F&B; companies under its coverage.

Coming to earnings, RHB Research expects the consumer sector to experience a softer second quarter following a solid first quarter in 2025, where 11 out of 14 companies under its coverage met expectations.

This is taking into consideration the combined effect of SST-related inflationary pressures, the anticipated rollout of the petrol subsidy rationalisation, and the frontloading of festive-related sales.

To mitigate the impact, the research house said retailers are expected to adopt more aggressive promotional strategies to sustain footfall and sales volume.

Nevertheless, RHB Research believes consumer spending will continue to be supported by stable employment, wage hikes in both the public and private sectors, and ongoing government assistance for lower-income households.

Source: https://www.thestar.com.my/business/busines...nsumer-industry

People have short memories. And that is why there is a saying, if you forget history, history will repeat itself. So blame the voters, not the politicians.

When in the opposition, PH keep talking about the insolvency of Malaysia in the 90s. So they use that to become the government and then, everything quiet.

You are the perfect example of the failure of Malaysian education, you just need spoon feeding. Anyone who know Google can easily find out more.

PH as* kisser like to give the impression the word "missing" means it was STOLEN. It is NOT stolen as claimed, just used for other government projects/needs.

SST is not multi tier. But gajilion taxes introduced this year means theres tax-on-tax effects at some points. ironic considering that PH via their false understanding on GST want to avoid.

LOL so you're repeating exactly the thing I said in my first post?

Calling me a failure of the education system when you're showing not even an utter lack of comprehension, but the ability of sight.

Its astounding how you can manage to click the 'quote' button, type, and yet be utterly blind to what you're quoting in the first place.

The epitome of success.

Also, I clearly do know how to use google, I did link the official statement from the MOF, which you clearly didn't click on. Guess you only know how to google search terms and copy paste links, not actually click on them

SST has Tax Cascading problem. An example. If an importer paid RM 10 SST and the product goes through wholesalers and retailers etc, by the time it reaches the end consumer, it would have balloon to RM 15 or 20 etc

GST has no such cascading problem.