KUALA LUMPUR, July 30 — The government had "no choice” but to introduce the Sales and Services Tax (SST) due to a shortfall in government revenue after zero rating the Goods and Services Tax (GST), former Prime Minister Datuk Seri Najib Razak said today.

Najib pointed out that the government would lose over RM40 billion in annual revenue following the removal of GST.

"There will be serious implications on government revenue,” the Pekan MP said.

"I guess they have no choice. We will see what happens,” Najib added, referring to the SST which is expected to be rolled out from September 1.

Najib had introduced GST at a rate of 6 per cent after abolishing SST in 2015.

The Pakatan Harapan government had zero-rated GST from June 1 after winning the May 9 general election.