KHAIRY Jamaluddin has called on the government to revive a broad-based consumption tax akin to the Goods and Services Tax (GST), saying Malaysia’s current revenue system is too fragile to weather future economic crises.
Speaking at the National Roundtable Discussion (Rimbun 2.0) at the World Trade Centre Kuala Lumpur on Saturday, the former health minister said he had previously urged Prime Minister Datuk Seri Anwar Ibrahim to consider reinstating the tax about a year after the latter assumed office.
“If there is one thing the prime minister can do, it is to bring back the GST,” Khairy said during the panel discussion.
“It does not even have to be called GST. Call it an ‘X tax’, a fair and equitable tax, even a Madani tax — the name is not important. What matters is that our revenue is not enough.”
The former Rembau MP argued that the existing Sales and Services Tax (SST) system was incapable of generating sufficient revenue, particularly during periods of extraordinary strain such as the Covid-19 pandemic or geopolitical conflicts affecting global markets.
Khairy also pushed back against the perception that GST disproportionately burdened ordinary Malaysians, noting that essential goods as well as sectors such as healthcare and education had previously been exempted or subject to zero-rated tax treatment.
He said administrations must be prepared to undertake politically difficult reforms early in their term, before attention shifts towards electoral considerations.
“Just because Barisan Nasional introduced it before does not mean the current government should avoid doing what is right,” he said, adding that there appeared to be a lack of political will to reintroduce the tax.
Malaysia implemented the GST in April 2015 under former prime minister Datuk Seri Najib Razak at a rate of 6%, replacing the previous SST regime.
The tax was abolished in 2018 following mounting public backlash and was subsequently replaced with a revised SST framework. – May 9, 2026
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