No discussions to revive GST in lieu of cutting RON 95 subsidies: Fahmi

Unity Government spokesman Fahmi Fadzil has denied reports that the government is mulling to bring back the goods and services tax (GST).

(NST) – Fahmi said there is no such discussion happening to bring back the GST instead of cutting subsidies for the RON95 petrol.

“There are no such discussions,” Fahmi said when asked after the National Day rehearsal here today.

Yesterday, Bloomberg, quoting sources reported that the Cabinet had discussed the viability of bringing back the GST instead of implementing subsidy cuts for RON95.

It said no decision has been reached given the political sensitivities.

It added that there is an emerging view in government that imposing GST may be politically easier than removing subsidies for popular RON95 petrol since Malaysia is an oil producer and most Malaysians consider cheap petrol to be a necessity.

The GST was first introduced by former Prime Minister Datuk Seri Najib Razak back in 2015 at 6 per cent.

It was then abolished in 2018, due to its broad application as a consumption tax.