PETALING JAYA: The Customs Department managed to answer several questions on the upcoming Goods and Services Tax (GST) during The Star Online’s #AskGST session with readers here the other day.
Customs assistant director Annie Thomas and senior assistant director Fauziah Abu Zarim were pleased with the overwhelming response from readers.
“Thank you for the positive response to the #AskGST session. We hope that we answered your questions to your satisfaction,” said Thomas.
“On behalf of the Royal Malaysian Customs, we would like to thank to thank all the commenters on Facebook and Twitter for taking time to understand GST better,” Fauziah.
Fauziah said it was important to note that GST would result in more competitive exports and that foreign direct investments will increase.
“It (GST) will eventually increase the standard of living of Malaysians,” said Fauziah.
When asked how the authorities would monitor businesses to ensure they did not take advantage of the system, Fauziah said the Customs Department would work with the Ministry of Domestic Trade, Co-operatives and Consumerism.
“If businesses take advantage of the system by charging when they have claimed from the Government, this will be anti-profiteering and they will be charged by the ministry under the Anti-Profiteering Act 2011,” said Thomas.
Several people also asked if there was any way to check if businesses were registered under GST.
“There is no license issued to businesses once they register for GST, but Malaysians can check if a company is registered by checking on our website,” said Thomas.
However, Fauziah said it was possible for businesses to charge GST to their customers even if they were not registered.
“Businesses can pass on the embedded GST to the consumers,” she explained.
Many Malaysians are worried about the extra burden they will face with the increase in price for certain goods and services.
“To ease the increase in tax burden, tax and non-tax packages are given,” said Thomas.
“An additional BR1M of RM300 is also given to income earners below RM4,000. But keep in mind that basic items are not subjected to GST,” she said.
Fauziah clarified several banking related questions, saying that if there is any fee imposed by the bank for the services that they provide, it will be subjected to GST.
“For example, if you withdraw from a MEPS ATM machine, RM1 will be charged by the bank and that amount will be subjected to GST,” she said.
The two GST experts also clarified that certain things were classified under a general category.
“Lobster is categorised under the general category of seafood, which is zero-rated. Sardine is a processed food, and is subject to GST,” said Thomas.
She also clarified that tax relief would be given for RON95, diesel and liquid petroleum gas (below 14kg). However, she said that RON97 would be subjected to GST.
“If things are held equal or constant, we should see a reduction in rice, potatoes, salt, chicken, beef, seafood and imported fruits among others,” said Thomas.
