Books to be zero-rated under GST, says report

All books will be exempted from the goods and services tax (GST), Putrajaya said, adding that this was to encourage the habit of reading among Malaysians.

The Star reported that the Finance Ministry had decided on Wednesday that the all types of reading materials, excluding magazines, would be zero-rated even as GST is implemented on April 1.

“The government hopes that after this announcement, all GST zero-rated reading materials will not see any price increase and that this can cultivate the reading habit among the people,” the daily quoted a statement from the ministry

Previously, only dictionaries, encyclopedias, reference works and religious books were zero-rated under GST and other reading materials such as fiction were to be imposed with the 6% tax.

The Malaysian Book Industry Council then presented a memorandum to the ministry, urging the government to reconsider its decision as the GST system would be confusing for booksellers and a burden for customers.

The report said that industry players recognised the decision to exempt books from GST would boost the country's reading culture.

Malaysian Booksellers Association president Keith Thong told The Star that the decision came as a huge relief to them. “We’re tremendously happy.

The government has listened to the industry and the people. It has done the right thing," he was quoted as saying.

Malaysian Book Publishers Association secretary Arief Hakim Sani Rahmat was reported as saying: "This is very good news. I am a bit sad, though, that e-books are not included. In my opinion, books in any format are still books.

“I hope e-books will be given the same treatment and be zero-rated."

Arief, who is managing director of PTS Publications & Distributors Sdn Bhd, said his company would make the necessary changes to its systems when the announcement is gazetted. – March 28, 2015.