Finance Ministry says GST issues could drag on for months – Bernama

The Finance Ministry believes the teething problems on the goods and services tax (GST), which came into force today, could take "seven to eight months" to iron out, its Deputy Minister Datuk Ahmad Maslan said.

He said the ministry has identified many teething problems in the initial stage of the GST implementation, like companies not issuing proper receipts for customers and problems on the GST software package.

"We expect GST to be stabilised within three to four months, though in reality it will take seven to eight months," he told reporters after making a working visit to Tesco Extra hypermarket to monitor the implementation of the GST.

Also present was Tesco Stores (M) Sdn Bhd director of government relations and corporate affairs, Datuk Azlam Shah Alias.

On the complaints received on GST today, Ahmad Maslan said the majority of them involved telecommunication companies (telcos) increasing the price of their prepaid reload coupons to include the GST.

He said this should not have happened as the Customs Department sent official letters instructing them not to impose GST on their reload coupons almost three months ago.

Ahmad Maslan said a RM10 reload coupon would still have the same value as the GST would replace the previous 6% sales and services tax.

"If the telcos still insist on increasing their prepaid reload coupons, then they should increase the talking time period as well," he said.

On another note, Ahmad said, there would be a joint press conference everyday at 5pm on GST by Customs Department's GST Director Datuk T. Subramanian and secretary-general of the Domestic Trade, Cooperatives and Consumerism Ministry Datuk Seri Alias Ahmad at the Finance ministry in Putrajaya. – Bernama, April 1, 2015.