Misif: Govt should return outstanding GST refunds without delay

KOTA KINABALU: The Malaysian Iron and Steel Industry Federation (Misif) calls on the government to expedite its process of returning outstanding refunds from the Goods and Services Tax (GST) to members soonest possible without delay.

In a statement, Misif said it empathised with the current government's fiscal position in seeking resolutions to the misappropriation of funds made under the previous administration.

“While we commend the government's honesty and earnestness in resolving this matter, we urge the government to consider the predicaments of our members should the waiting period be further prolonged,” it said.

“Under normal circumstances, the refund process only takes 14 to 28 days, according to the law. MISIF members have yet to receive a considerable sum – about RM85 million owing to 32 company-respondents in a recent MISIF survey – in input tax refund for several months already.”

The federation said any further extended delays, especially when the amount is substantial, may jeopardise business operations and disrupt cash flows.

“Moreover, the waiting period to beginning of next year is still more than four months away, and thereafter may take another several months for clearance. This will cause tremendous hardship and uncertainties to businesses,” it highlighted.

This comes as the steel industry has already been overwhelmed with a barrage of cost increases this year on account of the double whammy hike in energy tariffs (natural gas and electricity) which took effect on July 1, 2018, the implementation of the Employment Insurance Scheme (January 1, 2018) and numerous pending uncertainties relating to minimum wage and rehiring of foreign workers, as well as prevailing stringent credit access by financial institutions on the steel industry.

“The delay is untimely and continues to be a bane for exporters,” it explained.

“It will exacerbate the existing cash flow situation, and the loss in business opportunities arising from the on-going implementation of the duty drawback mechanism for the importation of steel raw materials to produce finished goods for export purposes.

“All the above would invariably impaired the competitiveness and sustainability of the domestic iron and steel industry.

“We trust that under the Pakatan Harapan-led Government, the plight of the industry would be adequately prioritised and addressed.

“In this regard, Misif would like to appeal to the government to return (GST refund) what is due in a timely fashion, preferably before the implementation of the SST to restore business confidence and to meet the tough challenges ahead.”