Exempt petty traders from GST, urges trade body – Bernama

The Malaysian Indian Textiles and General Stores Association (Mita) has urged the government to consider exempting petty traders from the goods and services tax (GST) which will be implemented from April 1, 2015.

Its secretary, Maheshwari Ramasamy, said the tax should not be imposed on traders from the lower level of retailing business though sometimes they met the RM500,000 threshold.

"Mita felt that the GST should be imposed only on wholesalers and retailers who conduct large quantity business.

"It’s good enough to collect GST from the big industry players and not burden petty traders and sundry shop owners who will be bogged down by the new accounting procedures for GST," she told Bernama.

Maheswary said more GST workshops were needed for better understanding of the new tax regime.

"Workshops will help the traders understand the GST better as they will have some hands-on tutorials on GST. "We prefer workshops rather than seminars as most of them give low preference with regards to GST accounting procedures.

"The explanations given through seminars on the accounting procedures are vague and most traders are still in the dark over the usage of such accounting software. "It will be appropriate if the government gives two years' grace period for petty traders to familiarise themselves with the GST instead of imposing huge penalties which they could not afford.

On the GST’s impact on businesses, she said, it would only be visible after April 1 this year.

“However, I cannot deny we are worried that the prices will go up but so far nothing is concrete,” she said. Maheshwari said the GST rate should be implemented in phases and not at 6% at one go.

It is mandatory for businesses with taxable turnover exceeding RM500,000 to register for the GST while those with turnover below the threshold could apply for voluntary registration. – Bernama, January 28, 2015.