The Borneo Post

GST registrant­s to be migrated to SST from today

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KUALA LUMPUR: The Customs Department expects to automatica­lly mi g rat e companie s that have registered under the Goods and Services Tax (GST) regime to the Sales and Services Tax ( SST) beginning today and will alert them via email, Customs director- general Datuk Seri Subromania­m Tholasy said.

He said the department has identified between 70,000 to 80,000 manufactur­ing companies to be listed under this SST 2.0, from 472,000 companies listed during the six per cent GST regime.

“During the GST implementa­tion process, other than manufactur­ers, wholesaler­s and retailers also had to register. But with the move to reinstate the SST, only manufactur­ers and service providers that reach a threshold value of RM500,000 a year will be taxed,” he told reporters during a briefi ng on the transition from the GST to the SST here yesterday.

The event was organised by Salihin Consult ing Group Sdn Bhd and the Malaysian Associatio­n of Tax Accountant­s. Subromania­m said to date, the department has trained some 5,000 manufactur­ers and will go in full gear before the tax commences on Sept 1 this year.

The federal government earlier yesterday tabled the Sales Tax Bill 2018 and Services Tax Bill 2018 ( SST Bills) for their first reading in the Dewan Rakyat.

In the explanator­y statement to these two Bills, the government said they were seeking to provide for the charging, levying and collecting of the sales and services tax, and for matters connected with it.

He said in providing a smooth transition from the GST to the SST, the Customs Department needs to begin its hand-holding programme even before the bills are approved. He also said that by next week the department will upload the list of 6,400 goods to be proposed for the sales tax. On the penalty for tax evaders, he said it has been ‘improved’.

The punishment under the nowdefunct Sales Tax 1972, he said, was a fine of not more than RM50,000 or up to three years’ imprisonme­nt or both, but first-time offenders now face a fi ne of between 10 and 20 times the sales tax amount or up to five years’ imprisonme­nt or both.

“Bur for an ordinary offence, don’t worry, we are not the type to choke people,” he said.

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