LGE says GST refund account shortfall is actually RM19.24b
THIS is RM1.33b more than the figure the finance minister told parliament last week.
FINANCE Minister Lim Guan Eng has clarified that the shortfall in the trust accounts for the Goods and Services Tax (GST) refunds is higher than what was previously disclosed by his ministry.
He told the Dewan Rakyat that the actual amount left in the fund was RM148.6 million and not RM1.48 billion.
“The total shortage of monies in the GST refund fund is RM19,248 million (RM19.24 billion) and not RM17,911 million (RM17.91 billion), ” Lim said.
He thanked the Dewan Rakyat for giving him the opportunity to give the correct figure.
He said the mistake was made by his officer.
“It is better that we be transparent, honest and straighforward with the Dewan Rakyat rather than conceal matters, like the past government.
“The (GST) refund arrears were caused by weakness in government cash flow due to lack of fiscal discipline, widespread wastage and large increase in debts.
“What was done by the past administration was account falsification and misappropriation of tax refund arrears for other uses or to close the deficit to show that they had a surplus.”
Lim confirmed that the Customs Department records showed that the total arrears in refunds for GST tax input claims exceeding two weeks were RM19.2 billion up to May 31.
From the total arrears, RM9.2 billion was for this year, RM6.8 billion last year, RM2.8 billion in 2016 and RM600 million in 2015.