The Inland Revenue Board (IRB) of Malaysia on 5 June 2025 announced yet another delay to the implementation of the e-Invoice system, originally scheduled to be enforced this year for companies with an annual turnover of RM1 million. The rollout has now been postponed to July 2026, with exemptions granted to businesses earning less than RM500,000 annually.

The government is strongly urged to cease the repeated deferments, openly acknowledge the current lack of readiness for implementation, and embark on a comprehensive review of the nation’s long-term tax structure.

Firstly, these repeated delays are unfair to businesses that have already invested significant time and resources in preparation. More critically, such indecisiveness undermines public and business confidence in government policy. The postponements also reflect unresolved issues within the current e-Invoice framework and its support infrastructure. The Ministry of Finance and the IRB must be transparent about these shortcomings and provide a concrete and practical plan for improvement, rather than resorting to indefinite delays.

What is even more concerning is the recent announcement by Deputy Finance Minister Lim Hui Ying that the government will soon expand the scope of the Sales and Service Tax (SST) via a gazette next week. This effectively amounts to a backdoor tax increase and lays bare the fiscal pressures facing the national treasury.

Given the current state of strained public finances and rising fiscal burdens, the government must set aside political prejudices and seriously consider the reintroduction of the Goods and Services Tax (GST). Compared to the existing SST regime, GST offers a more structured, transparent, and broad-based taxation model. It is also a more sustainable mechanism that can cushion the socioeconomic impact of subsidy removals in the future.

Additionally, both domestic and international financial institutions, including the International Monetary Fund (IMF), have repeatedly recommended that Malaysia reinstate the GST. With over 170 countries around the world having adopted similar consumption taxes, it is unwise for Malaysia to reject GST solely due to past political considerations.

The public does not oppose taxation—but tax policies must be based on principles of fairness, transparency, and long-term sustainability. Constant policy reversals and delays only breed public mistrust and cause the nation to miss critical windows for fiscal reform.

I call on the Finance Ministry and national leadership to show political courage, reassess the possibility of reintroducing GST, and initiate an open public consultation process. Input from industry players, experts, and citizens must be incorporated to formulate a tax reform strategy that balances national revenue needs with the people’s financial well-being.

Tan Jie Sen
MCA Youth Central Committee Member MCA Selangor Youth Chief

6 June 2025

-MCA Comm-