Wednesday, November 11, 2026

Anwar Says GST Rejection Is Not About Politics as Deficit Projected to Narrow to 3.3 Percent in 2027

Prime Minister Datuk Seri Anwar Ibrahim said on 12 November 2026 that the government's refusal to reintroduce the Goods and Services Tax (GST) is not driven by political considerations, but by a commitment to ensure the tax system does not burden the people, especially low-income groups. The remarks were reported by Bernama.

Anwar also spoke about the fiscal outlook, saying the national deficit is projected to narrow to 3.6 per cent in 2026 and 3.3 per cent in 2027, with a target of 3.0 per cent in 2028. The government has maintained the sales and service tax during the Budget 2027 debate, which is at committee stage in the Dewan Rakyat until 26 November.

The GST question regularly comes up in Malaysian politics. Supporters of a broad consumption tax argue that it widens the tax base and reduces reliance on other revenue sources, while critics say it raises living costs. Anwar's comments suggest there is no change in policy ahead, and the government is relying on targeted subsidies, cash aid and economic growth to manage the deficit.

News sources (nofollow): Bernama | Bernama: Budget 2027 debate

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