PETALING JAYA: The goods and services tax (GST) will be zero-rated starting June 1, effectively scrapping the consumer tax implemented by the previous government in 2015, the finance ministry has announced.
In a statement, the ministry said this covered all local and imported goods.
The 6% GST came into effect on Apr 1, 2015.
The announcement today fulfils Pakatan Harapan’s pledge to abolish the tax, blaming it for the increase in prices of goods and services.
The new government has said that its income would not be affected by doing away with the tax.
Last year, the Najib Razak administration said some RM44 billion was collected in GST alone.