Kuala Lampur:Deputy Finance Minister Liew Chin Tong announced that the government plans to integrate features of the goods and services tax (GST) into the existing sales and service tax (SST) system. This move aims to eliminate the cascading tax effect within the country's taxation framework.

According to BERNAMA News Agency, Liew confirmed that while the SST will remain the core of the country's taxation system, suitable elements from the GST will be incorporated to prevent any cascading impact. He made these remarks in response to a question from Datuk Seri Hamzah Zainudin in the Dewan Rakyat, regarding the future direction of the nation's tax system.

The Deputy Finance Minister explained that the decision to retain the SST was due to its simplicity and long-standing history of over 50 years. The government's objective is to achieve a balance that prevents consumers from being overburdened while ensuring businesses do not face cascading tax effects.

On August 18, Prime Minister Datuk Seri Anwar Ibrahim indicated that the government is open to exploring the integration of GST and SST elements to create a more progressive national taxation system.