This article first appeared in The Edge Financial Daily on June 7, 2018

KUALA LUMPUR: The Goods and Services Tax Act 2014 (GST Act) will be repealed when the Parliament convenes on July 16, said Prime Minister Tun Dr Mahathir Mohamad. This will pave the way for the tabling of the Sales and Services Tax (SST) Bill.

“Parliament will meet on July 16 for the swearing-in of Parliamentarians and the speech by the Yang d-Pertuan Agong,” the prime minister told a press conference after attending the weekly cabinet meeting here yesterday. Parliament will be in session for 20 days.

“In the session, we will study the papers on the abolishment of the GST Act and the Anti-Fake News Act 2018, as promised [in the Pakatan Harapan election manifesto]. We will also make some amendments to other laws.

“This would be studied and debated by members of parliament with the intention of doing away with the restrictive and draconian law,” Dr Mahathir said of the Anti-Fake News Act.

Following the 14th general election, the 6% GST was set at 0% from last Friday, as the government prepares to roll out the SST on Sept 1.

The GST was introduced on April 1, 2015 under former prime minister Datuk Seri Najib Razak to increase the government’s revenue. It had replaced the SST, enacted in 1972. Last year alone, the government collected RM44.3 billion in GST revenue, equivalent to 3.3% of the country’s gross domestic product.

On May 31, Finance Minister Lim Guan Eng said following the announcement of the zero-rated GST, the federal government’s revenue is expected to decline by RM21 billion.

Earlier at the press conference, Dr Mahathir also said several “extraneous” bodies associated with certain ministries, in particular the health ministry, would be dissolved to reduce the government’s costs.