PAC to meet Najib and Lim

Committee wants explanations on tax credit under GST

PETALING JAYA: The Public Accounts Committee (PAC) will meet former prime minister Datuk Seri Najib Tun Razak and Finance Minister Lim Guan Eng to get their explanation on the RM19.4bil input tax credit under the Goods and Services Tax (GST).

Najib, the former finance minister, would face the committee on Oct 17 while Lim would be appearing on Oct 22 to provide their respective explanations on the issue, said PAC chairman Datuk Seri Dr Ronald Kiandee.

“The PAC has also decided to meet former Treasury secretary-general Tan Sri Irwan Serigar Abdullah on Oct 16 although he was present in the previous proceedings on Sept 13.

“The committee hopes to come to a conclusion and provide suggestions to the government on the issue when a PAC report on the matter is tabled in the Dewan Rakyat after all three of them provide their explanations to the committee,” said Dr Kiandee in a statement yesterday.

In August, the Dewan Rakyat was told that the previous government had not been able to refund companies their tax credit that came from the implementation of the GST because 93% of the money was not placed in the correct account.

Lim had alleged that some RM18bil of the RM19.4bil input tax credit under the GST was “robbed” by the previous administration.

He said as of May 31, the outstanding GST refund stood at RM19.39bil, whereas there was only a balance of RM1.486bil in the repayment fund.

Lim said from the total input tax credit, RM9.2bil or 47% was recorded between Jan 1 and May 31 this year, RM6.8bil or 35% in 2017, RM2.8bil (15%) in 2016, and RM600mil (3%) in 2015 (from April 1 to Dec 31, 2015).

Under the GST, the input tax credit allowed businesses to reclaim credit for taxes paid on purchases, subject to filing of input tax documents.

Dr Kiandee also said that in the PAC proceedings held on Sept 12 and 13, two former second finance ministers had provided their statements.

Datuk Seri Ahmad Husni Hanadzlah served the portfolio from March 2008 to June 2016, while Datuk Seri Johari Abdul Ghani held the post from June 2016 to April 2018.

“Both of them gave their explanations for about an hour each that touched on policies as well as their responsibilities on the GST system when they were holding office,” said Dr Kiandee.

On another matter, Dr Kiandee said the PAC agreed to reopen proceedings on companies owned by the Finance Ministry in relation to 1Malaysia Development Bhd (1MDB), which was agreed upon through a motion in the Dewan Rakyat on Aug 16.

He said proceedings on the matter would start soon.

On Aug 16, the Finance Ministry tabled a motion calling for the Auditor-General and the PAC to reopen a probe into the 1MDB scandal.