It was not so long ago that cartoonist Zunar used to take the mickey out of former Prime Najib Razak and his Goods and Services Tax.
But in recent days, some politicians and analysts have floated the idea of restoring the unpopular GST, perhaps with a reduction in rate from 6% to 3%. They argue this would be more effective in widening the tax base.
But the government maintains that the Sales and Service Tax, which replaced the GST last year, would remain – and it even expects SST revenue to surpass the past GST collection.
Many seem to have forgotten how deeply unpopular the GST was. The GST, introduced in 2015, was so hated, it helped boot out Najib. Many dislike the GST and, to a lesser extent, the SST as these taxes hurt their pockets everyday. Both these consumption taxes are regressive taxes which disproportionately hurt the lower income groups – and to a less extent the middle class – the hardest. Full article on Aliran website