Drop in Goods and Services Tax complaints reflects improved understanding of implementation
KUALA LUMPUR: The reduction in the number of complaints received by the government in respect of the Goods and Services Tax (GST) implementation is proof that people now have a better level of understanding of it.
The Finance Ministry said from April to December 2016, there were 840 complaints received compared to 6,823 for the same period of 2015.
At the same time, there were no critical issues raised with the Royal Malaysian Customs Department since the GST's implementation on April 1, 2015.
“The understanding of traders towards the GST's implementation is also getting better with 435,809 registrations as of Feb 21, compared totheinitialmandatoryregistration target of 240,000 companies,” the Treasury said in a written reply in Parliament yesterday.
Datuk Dr Makin @ Marcus Mojigoh (BN-Putatan) had enquired as to what extent the people's understanding and acceptance of the implementation of the GST was, as well as the total collection and GST refunds.
He also asked if the government had any plans to raise the GST rate.
The ministry explained that the GST collection between Jan 1-Dec 31, 2016 was RM41.206 billion.
The input tax credit claim paid out by the Customs Department for the same period was RM16.92 billion (65.21 per cent), while the balance of claims totalling RM2 billion was still being processed to be repaid.
The ministry also clarified that the government had no plans to review the GST rate of six per cent currently.
“If there is a need to review, the government would look at the country's overall tax system.
“This includes the rate of corporate and individual tax as well as other factors which may be impacted by the change in the GST such as economic growth, the Consumer Price Index and investments,” it added. — Bernama