GST implementation a great success with few issues: Customs dept

PETALING JAYA: The implementation of the Goods and Services Tax (GST) has been a great success with minimal issues, says the Royal Malaysian Customs Department.

There have been very few problems regarding the self-policing tax other than confusion among consumers regarding the six per cent tax imposed on prepaid top-ups, Customs GST Director Datuk Subromaniam Tholasy said.

He was speaking to reporters after the launch of '200 FAQs & Case Studies on Malaysia's Goods & Services Tax' in conjunction with the half-day Save and Invest Roadshows and Seminars 2015.

"It's actually not an issue, it's just that some consumers did not realise that a service charge is imposed on the prepaid card that has been included in the total amount that they have paid," he said.

Subromaniam said telecommunications companies are allowed to impose the six per cent GST on prepaid top-ups in lieu of additional talk time.
 

He was reported to have met all telco companies, giving them two choices – maintain the prepaid reload card prices with the six per cent GST absorbed, or charge the six per cent on top of the reload card price but give consumers additional airtime.

He also said some traders have refused to charge the tax while some have even been charging wrongly.

"Some traders are charging the zero rated items due to confusion in the early part of the implementation and lack of preparation and understanding," he said, adding that those traders will be taken to court.

However, out of the over 300,000 companies that have registered, only about 30 to 40, mostly in the food and beverage and retail sectors, will face lawsuits, he said.

Since January, the Customs Department has issued about 50,000 notices to companies which have yet to register for the GST regime. – Bernama