KELANA JAYA, Oct 15, 2014:
The Public Accounts Committee (PAC) has recommended the Customs Department form a technical committee to evaluate taxable items and services under the Goods and Services Tax (GST).
PAC chairman Datuk Nur Jazlan Mohamed said the list should be prepared immediately to let the public know of these items under GST, to avoid confusion when the new tax system is implemented on April 1 next year.
“It is also important for the Domestic Trade, Cooperatives and Consumerism Ministry to enlighten the public on the possible fines and sanctions should they fail to register their businesses on time,” he said, after heading PAC to evaluate the hand-holding programme for GST-registered businesses at Royal Malaysian Customs headquarters, here, today.
The Pulai Member of Parliament said that the GST collection by the Customs Department was pivotal to ensure that the government did not suffer a high deficit when next year’s budget was tabled.
“We are aware that the Customs is expected to collect RM23 billion from the GST, and this collection is vital to ensure that the government goes through a deficit of between 3-3.5% for next year,” he said adding that deficits are expected given possible issues that will arise in the initial implementation of the GST.
Meanwhile, Royal Malaysian Customs director-general Datuk Seri Khazali Ahmad was confident more businesses will turn up to register their businesses under the new law.
“Our priority is to get the people to register for the GST as efforts to enlighten about the new tax continues.”
Khazali revealed that as of yesterday, 88,471 individuals have registered their businesses under the Customs’ GST system.
“Given that the system is user-friendly, only 500 of those individuals chose to register manually instead.”
The Customs Department is launching the first phase of its guidance programme for GST-registered businesses from October to December to ensure businesses have a smooth transition to the GST from the current Sales and Services Tax (SST).