Wee Ka Siong, president of the Malaysian Chinese Association (MCA), has criticized the government’s decision to delay the reintroduction of the Goods and Services Tax (GST), arguing that it contradicts the imposition of multiple other taxes despite claims of low public income.
In a Facebook post on August 27, 2025, the Ayer Hitam MP highlighted the Finance Ministry’s recent statement that GST implementation is premature due to insufficient household incomes.
“If the government acknowledges that people’s incomes are still low, why then raise the Sales and Service Tax (SST) from 6% to 8%?” Dr. Wee questioned, pointing to the recent increase as inconsistent with the ministry’s reasoning.
He further noted the introduction of several new taxes, including an 8% Digital Services Tax (DST), a 10% Low-Value Goods Tax (LVGT), a 10% Capital Gains Tax (CGT), a proposed carbon tax, a 2% Dividend Tax, elevated passenger service charges at airports, and increased stamp duties.
Wee argued that while GST is often described as broad-based, the current SST system also has extensive coverage, leading to a cascading effect of double taxation. Citing the Federation of Malaysian Manufacturers (FMM), he stated that nearly 97% of goods are now subject to SST.
Wee also challenged the Finance Ministry’s preference for SST over GST, which he described as “more efficient, transparent, and widely adopted in over 170 countries.” He pointed to the ministry’s own Fiscal Outlook and Federal Government Revenue Estimates 2024 report, which noted that GST is “better and less burdensome” for the public compared to SST. “Does the ministry intend to retract this report and revise it?” he asked, questioning the consistency of the government’s stance.
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