The Malaysian government is considering the reintroduction of the Goods and Services Tax (GST), but only when the minimum wage reaches RM3,000 to RM4,000 a month.
The minimum wage in Malaysia at this point is RM1,500.
Prime Minister Datuk Seri Anwar Ibrahim mentioned that although GST is recognized as a transparent and efficient tax system, it should not burden low-income residents.
He believes it is important to ensure that income rises to a threshold set in advance before implementing the tax.
Anwar emphasized that GST will increase government revenue but stressed that the policy must be implemented carefully to avoid negative effects on the poor.
He said GST has been discussed for many years, even since he became Finance Minister in the 1990s.
At the time, he opposed its introduction because he believed that fighting corruption was a more pressing issue.
