File your GST fast, businesses urged

KUALA LUMPUR: Businesses that have not filed their Goods and Services Tax (GST) should do it as soon as possible and not take advantage of the Customs Department's leniency, Deputy Finance Minister Datuk Chua Tee Yong said today.

Chua said 87% of businesses have filed their GST papers for the April 1 to July 31 quarter and the department has only sent out notice of assessments to some 36,000 traders without taking any punitive action.

"I think the department has been quite accommodating and I hope businesses will not take advantage of their leniency.

"If you (businesses) have filed and made a mistake, they'll (Customs) come back to you and help rectify the problem. Their objective now is to help businesses comply with GST," he told a press conference at Wisma MCA.

Chua said the department has not given a definitive date to start clamping down on businesses that do not file their papers but advised them to get it done as he does not wish to see traders penalised.

He added that the deadline for filing taxes for the quarter had already been extended to Aug 14 the first time and then Aug 24 for the second time. Chua was chairing a GST dialogue with the Federation of Malaysia Chinese Guilds Association (FEMACGA) and the Customs Department to discuss the tax's implementation.

Among the issues raised were pre-printed invoices, reducing corporate tax, reducing personal income tax, and how will the collected tax revenues be used. Chua said the amount collected and how the funds will be spent will be disclosed transparently in the coming Budget 2016.

Commenting on Rural and Regional Development Minister Datuk Ismail Sabri Yaakob's proposal to set up Low Yat Plaza-like digital malls for bumiputras in each state, he said it is not a feasible idea.

Chua said while the MCA leadership had yet to discuss the matter, if even one of these malls doesn't do well then it will be costly to maintain operations and it is simply not wise to sideline other races when doing business.

Furthermore, he said, the name "Low Yat" could be trademarked and cannot be used by other shopping malls that seeks to emulate the popular hub for digital goods.