Kuala Lumpur, 12 October 2026 – Malaysia’s debate over consumption taxes has reopened after Opposition Leader Hamzah Zainudin proposed bringing back the goods and services tax at a revised rate. The suggestion, made during the policy-level debate on Budget 2027, is not government policy and came without a confirmed rate or implementation timetable. Even so, it puts the country’s search for durable revenue back under scrutiny.
Hamzah argued that recent tax measures appeared to move towards a broader consumption-tax model without being described as GST. His intervention reflects a long-running policy question: whether Malaysia should rely on a narrower sales and service tax system or return to a multi-stage tax that captures value across the supply chain and allows businesses to claim input credits.
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