On May 16, 2018, the new Malaysian government said it will reduce the tax on goods and services to zero from June 1 and effectively abolish it. In a statement from the Ministry of Finance, all registered traders have been instructed to comply immediately with this zero-rate decision on GST. All registered companies are also subject to applicable regulations.
However, the new government would have to repeal the GST Act of 2014 before the excise duty could be completely abolished. The sales and service tax will be reintroduced to replace the GST. The Ministry of Finance has stated that the shortfall in revenue will be supported by specific revenue and expenditure measures, which will shortly be announced in addition to the reintroduction of Sales and Services Tax.
