GST: Customs to collect extra 10-13% in revenue

MALACCA: The Customs and Excise Department is targeting to increase the goods and services tax (GST) collection by 10-13% next year, as compared to RM38 billion this year, says director-general Khazali Ahmad.

He said Customs would focus on the issue of GST delivery statement compliance as one of the measures to improve the taxation system next year and ensure the GST collection target was met.

“As of this month, about RM37 billion has been collected and the target collection of RM38 billion this year is achievable.”

He said 97% of traders were submitting their GST forms and this indicated greater awareness among them, he told reporters at the Enforcement Agencies Collaboration Seminar here today.

The event was officiated by Deputy Finance Minister Othman Aziz.

The seminar had the theme “Driving Civil Service Success through Excellent Leadership, Modernisation and Cooperation of Organisations Among Implementor Agencies”.

On another matter, Khazali said the country was losing between RM1 billion and RM1.3 billion a year due to leakages in tax collection on cigarettes, liquor and vehicles on tax-free islands in the country, including Pulau Langkawi in Kedah, Pulau Tioman (Pahang) and Labuan (Sabah).

He said this was expected to be addressed through the restructuring of cigarette and liquor sales tax, as well as tax-free vehicles brought into the three islands from Nov 1.

“Local residents and tourists, as well as foreign visitors can still enjoy tax exemption on the three items, but the way we handle the tax has changed so that we really know how much cigarette and liquor are purchased on the islands,” he said.

the source :www.freemalaysiatoday.com

Tackling the rising cost of living

 RISING cost of living is a global phenomenon. It is especially so in countries on a growth path to a developed-nation status. For example, coffee in a styrofoam cup on the sidewalks of Tokyo or, for that matter, any big city in a rich country, will lighten one’s pocket by as much as RM30. For residents in such big cities, such a price would not be too troubling. This is because with development, wages have risen in parallel. However, while we are on overdrive to achieving rich-nation status by 2020, our wage levels have shown extreme stickiness.

 

Strong IT must for better implementation of GST: Grant Thornton

Malaysia is one the recent countries to have gone live with the implementation of goods and services tax (GST). Lorraine Parkin, APAC, Grant Thornton, who has closely worked with Malaysia in introducing the indirect tax regime, talks about the impact of GST on Indian businesses. In an interview with CNBC-TV18, Parkin says businesses should be mindful of strong IT and financial management platforms because implementation of GST drives everybody into latest generations of accounting software. It brings transparency with it. She also said one of the enablers for the better implementation of GST is correct IT. It is also important to ensure that people with authority are involved in the project management. "To do this kind of project alongside it you do need a degree of discipline and everybody needs a clear job specification," said Parkin.

 

Despite GST, OECD says Malaysia has room for more taxes

KUALA LUMPUR, Nov 29 — Putrajaya is missing out on opportunities to widen its tax base further, according to an Organisation for Economic Co-operation and Development (OECD) report that found tax-to-GDP, or gross domestic product, ratio to be far below that of its member countries.

In the OECD's “Revenue Statistics in Asian Countries 2016” report, it said that Japan, South Korea, the Philippines, Malaysia, Singapore and Indonesia all recorded less than the OECD average of tax income that was 34.2 per cent of GDP in 2014.

Despite what the report's title suggests, the data terminates at 2014.

Malaysia's total tax revenue for the year in which it introduced the Goods and Services Tax (GST) was 15.9 per cent of the size of its entire economy.

Rahman Dahlan: Rising living cost due to external factors

KUALA LUMPUR: The country's current challenging economic situation, which has pushed the cost of living up, is due to external factors, says Minister in the Prime Minister's Department Datuk Abdul Rahman Dahlan(pix).

He said the government would not take actions that would cause sufferings to the people as this would reduce public support for them.

"We understand that the government reacts according to its capacity in this uncertain economic climate due to the prevailing challenges.

"This situation has to be translated to reduced subsidies or restructuring of subsidies, and this is our response to the external factors," he said at the First Session: Economic Discussion at the Ummah Agenda Empowering Convention 2.0.

During the question-and-answer part of the discussion, Abdul Rahman said revenue collected from the Goods and Sevices Tax (GST) managed to save the country's finances following the drop in the world market oil price since 2014.

The minister said the country's revenue of about RM40bil from petroleum sale had declined by half following the fall in prices.

"Imagine losing half of your salary every month without prior notice or announcement. This is what has happened to the country's oil revenue. The GST has saved us and our country's history will commend our party leaders for daring to create the GST," he said. - Bernama

the source : www.thestar.com.my