Malaysia says GST reduced to zero per cent from 6 per cent, fulfilling PH promise

File photo showing people carrying shopping bags while walking beside a congested road in Johor Baru. PHOTO: THE NEW PAPER

KUALA LUMPUR - Malaysia's goods and services tax (GST) will be reduced from 6 per cent to zero per cent from June 1, the Finance Ministry said on Wednesday (May 16).

Prime Minister Mahathir Mohamad said earlier that he had instructed the government to stop collecting GST.

Abolishing the GST was a major promise made by the Pakatan Harapan coalition should they win the May 9 general election.

"All registered traders must follow the decision of the zero rate now. At the same time, registered businesses are still subjected to all current regulations," said the ministry in a statement.

The "zero per cent" move means that the deeply unpopular GST is effectively abolished.

But the Malaysian parliament would need to repeal the GST Act 2014 before the consumption tax could be totally removed.

The new government has said it would bring back the Sales and Services Tax to replace the GST.

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