4,115 businesses in Sabah yet to register for GST

Kota Kinabalu: A total of 62,709 businesses nationwide and 4,115 Statewide have yet to register with Customs for the Goods and Services Tax (GST).

According to Customs Department GST Division Director Datuk Subromaniam Tholasy said his department had already issued a notice since two days ago to these companies.

"We have a database of these businesses, their addresses and who the owners of the business are but at present we are taking the 'soft' approach on this and these businesses are advised to come and register themselves before Feb 28.

"If they register before Feb 28, they will not face any fines or penalties. But starting from March 1, we will start our 'Ops GST' operations on a large scale nationwide where our officers will go to their premises and do registrations by force.

"The Director General of Customs has the power to do this registration by force and they will also be compounded RM15,000. If they fail to settle these compounds, they will be charged in court.

"But that is not our goal. We actually don't want to bring them to court but do not force us to do it. They need to register also because these businesses need to be fully prepared for GST as we have just less than 50 days if you start from today.

So please come and register your business with us as soon as possible before Feb 28." He said this to reporters after a GST briefing from a business perspective to media practitioners organised by the Sabah Information Department in collaboration with the Ministry of Finance and the Ministry of Domestic Trade, Cooperatives and Consumerism Ministry at Promenade Hotel on Thursday.

Meanwhile Subromaniam said the Goods and Services Tax to be implemented on April 1 will not end up burdening the people. He said this because GST model in Malaysia is based on studies of the GST system in more than 160 countries which have already implemented GST.

"If we look at the GST model, all basic food items are not subject to GST ... critical and important services to people whether public transport, private education, private health and certain financial services, water consumption, electricity consumption up to 300 units are all exempt from GST, "he said.

Also speaking at the briefing was Ministry of Finance Secretary (Corporate Strategy and Communications) Datuk S. Kumaran and Ministry of Domestic Trade, Cooperatives and Consumerism (Enforcement Division) Low Swee Hon

Subromanim said studies have shown that other countries impose GST rates ranging from seven to 27 per cent compared to Malaysia's six per cent with Singapore at seven per cent and only Taiwan being the lowest at five per cent.