KUALA LUMPUR: The Goods and Services Tax (GST) must be implemented in the right way, says banker Tan Sri Nazir Razak.

Nazir, who was asked about the government’s move to reintroduce goods and services tax (GST), said Malaysia should take another look at its taxation system in order to increase its income.

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“GST is the right way forward but it must be implemented in the right way, it was a mistake by Pakatan (Harapan) to remove GST; they should have reduced (its rate) and given more exemptions to the lower-income groups.

“In terms of the situation today on rising prices of goods, my view is we need to take another look at how Malaysia taxes people... we need to increase taxes for the wealthier group.

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"Malaysia should introduce windfall tax because my worry is the government will continue to spend, but it has not done much to increase income.

“Many countries realise that if they don't increase their income by increasing tax, they cannot spend to help the poor,” he said in a discussion on Malaysia’s future challenges at the World Trade Centre here on Friday (June 3).

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Prime Minister Datuk Seri Ismail Sabri Yaakob previously said the government was keen to bring back GST.

He said the government was aware of the negative perception towards GST but there were limited options for replenishing the Federal coffers.

GST was implemented on April 1, 2015 at a standard rate of 6% and was later zero-rated in 2018.