Kota Sentosa State Assemblyman Wilfred Yap has urged the federal government to reinstate the Goods and Services Tax (GST), or introduce a Value Added Tax (VAT), as part of a long-term strategy to strengthen Malaysia\u2019s fiscal foundation. He cautioned that continued reliance on Sarawak\u2019s oil and gas resources is both unsustainable and unfair to the state.<\/p>\n\n\n\n
\u201cAs Malaysia aims to become a high-income and developed nation, our fiscal policies must be grounded in sustainability and long-term planning,\u201d Yap said. \u201cThe return of a broad-based consumption tax like GST or VAT is essential if we are to reduce dependence on natural resources and future-proof our economy,” he said.<\/p>\n\n\n\n
He pointed out that over 160 countries, including Malaysia\u2019s regional neighbours such as Singapore, Indonesia, and Thailand, have long implemented GST or VAT systems for their proven ability to generate consistent revenue without hindering economic growth.<\/p>\n\n\n\n
\u201cIn contrast, Malaysia\u2019s current Sales and Service Tax (SST) is narrow, outdated, and inefficient. It fails to cover large segments of the modern economy and results in cascading tax effects that unfairly impact consumers,\u201d he explained.<\/p>\n\n\n\n
Yap believes that merely expanding the SST base, as proposed by the current government, will not solve the underlying structural problems in the nation\u2019s tax system.<\/p>\n\n\n\n
\u201cThe SST model is fundamentally flawed. What we need is real reform, not superficial adjustments. The Unity Government\u2019s focus on fine-tuning SST misses the bigger picture,\u201d he added.<\/p>\n\n\n\n
Yap also criticised the federal government\u2019s continued dependence on Sarawak\u2019s oil and gas revenues through Petronas, arguing that such a model undermines the spirit of the Malaysia Agreement 1963.<\/p>\n\n\n\n
\u201cSarawak\u2019s petroleum resources primarily belong to Sarawakians. Their ongoing exploitation without a fair and transparent revenue-sharing mechanism is unjust and disregards the founding principles of our federation,\u201d he said.<\/p>\n\n\n\n
He stressed that a modern and equitable tax framework, such as GST or VAT, can be designed to minimise impact on low-income groups while ensuring sufficient revenue for national development.<\/p>\n\n\n\n
\u201cA carefully structured GST or VAT \u2014 with a low starting rate, exemptions for essential goods, targeted support for B40 households, and strong anti-profiteering enforcement \u2014 can provide the government with a transparent and stable source of income without burdening the rakyat unnecessarily,\u201d Yap said.<\/p>\n\n\n\n
He further noted that the 2018 removal of GST was politically motivated, and that current fiscal pressures demand a return to sound economic reasoning.<\/p>\n\n\n\n
\u201cIt\u2019s time to stop politicising tax reform. GST or VAT, not SST or Petronas, must form the foundation of Malaysia\u2019s long-term financial stability. Responsible governance means making decisions that benefit the country in the long run, not just short-term popularity,” he added.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kota Sentosa State Assemblyman Wilfred Yap has urged the federal government to reinstate the Goods and Services Tax (GST), or introduce a Value Added Tax (VAT), as part of a long-term strategy to strengthen Malaysia\u2019s fiscal foundation. He cautioned that continued reliance on Sarawak\u2019s oil and gas resources is both unsustainable and unfair to the state. \u201cAs Malaysia aims to become a high-income and developed nation, our fiscal policies must be grounded in sustainability and long-term planning,\u201d Yap said. \u201cThe return of a broad-based consumption tax like GST or VATRead More<\/a><\/p>\n","protected":false},"author":1,"featured_media":32905,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14,1,7],"tags":[],"_links":{"self":[{"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=\/wp\/v2\/posts\/33098"}],"collection":[{"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33098"}],"version-history":[{"count":1,"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=\/wp\/v2\/posts\/33098\/revisions"}],"predecessor-version":[{"id":33099,"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=\/wp\/v2\/posts\/33098\/revisions\/33099"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=\/wp\/v2\/media\/32905"}],"wp:attachment":[{"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33098"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.suppnewsportal.com\/main\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}