He said 175 countries had introduced GST because it contributed to their gross domestic product and because government tax revenue would be relatively low without GST revenue.

Speaking to reporters after an event here today, Tengku Zafrul said reintroducing GST would take quite some time because the tax had been abolished.

“If the study finds that the GST benefits are clear, we will take it to the Cabinet. The final decision is not for the government to make, it’s for Parliament,” he said.

Tengku Zafrul said if approved by Parliament, it would take about nine months to reintroduce the GST.

The GST was introduced in 2015 at a rate of 6% before it was abolished in 2018 by the then ruling government.

Tengku Zafrul said the study was now at the engagement stage and one of the issues was to ascertain a fair rate of 3-4% or 7-8%.

It was looking for an alternative to improve on the existing sales and services tax (SST), which had been described as inefficient and caused many countries to opt for GST.

When asked about a fair GST rate, Tengku Zafrul said whatever it was, it should be able to generate a higher revenue than the existing tax system.

He said some countries had even imposed a higher rate because they were able to give many exemptions, like in Saudi Arabia, which imposed a GST of 15% due to the high oil revenue.

“There should be a study on the fair rate to generate revenue for the country’s development, while ensuring that it will not burden the people and the business community,” he said.