Umno vows to bring back GST, says Zahid - 'no such thing as hybrid taxes'

KUALA LUMPUR – Umno has pledged to bring back the Goods and Services Tax (GST), with party president Datuk Seri Dr Ahmad Zahid Hamidi rejecting the idea of combining GST and the Sales and Services Tax (SST) in a hybrid system.

Zahid said Umno would restore GST at a more reasonable rate to ease business operations and support economic development across Peninsular Malaysia, Sabah and Sarawak.

He said this would also improve the cost of living of all Malaysians. 

"Bossku had done the right thing," he said, referring to former Prime Minister and Finance Minister Datuk Seri Najib Razak.

Najib implemented GST in Malaysia at a rate of 6 per cent on April 1, 2015. The Pakatan Harapan government scrapped the GST and replaced it back with the SST in June 2018 following the 14th General Election, as it was one of its major manifesto promises.

“Change back to GST. Change back to GST. There is no such thing as hybrid taxes,” he said during his presidential policy speech at the Umno General Assembly 2026.

The crowd cheered following this announcement.

Zahid said Malaysia should not attempt to combine GST and SST, claiming such a hybrid tax system had not been adopted by other countries.

“We are not talking about combining GST and SST. No country has ever done that,” he said.

He said the party believed the GST system could be improved by introducing a more appropriate rate while making it easier for businesses to operate.

“Bossku has done it right. We are determined to bring GST back at a more reasonable rate,” he said, referring to former prime minister Datuk Seri Najib Razak.