KUALA LUMPUR (BERNAMA) - Malaysia's Parliament on Wednesday (Aug 8) repealed the Goods and Services Tax Act 2014 after its third reading in the House.
The unpopular consumption tax was abolished just over three years after its implementation in April 2015.
Speaking in Parliament, Finance Minister Lim Guan Eng said: "Finally, GST is dead."
The three-month old Pakatan Harapan (PH) government is replacing the GST with the Sales and Service Tax (SST) that will be implemented in September.
The Lower House of Parliament on Wednesday also passed the Service Tax Bill 2018, a day after passing the Sales Tax Bill 2018.
The abolishing of the GST fulfilled a key election promise by the four-party PH alliance to voters.
The two new bills will now head to the Upper House of Parliament, or the Senate, for approval.https://www.youtube.com/watch?v=zKdq-E_3iZM
Following this, the SST Bills will need the assent of the Malaysian King.
Malaysia for long years had implemented the SST, which is a narrower form of taxes on sales and services.
Former prime minister Najib Razak, in a Facebook posting on Tuesday (Aug 7) said abolishing the GST would weaken the country's economic structure.
"Malaysia has now lost all economic advantages, competitive traits and economic catalysts that were accorded by GST.
The problems and weakened economic structure which we had back then (before GST) such as high corporate tax, tax evasion and illicit financial flow will return," he said.