Economy will be crippled without GST, says Najib

PETALING JAYA: Malaysia’s economy will be crippled if the goods and services tax (GST) is lowered from six to three percent, Prime Minister Najib Razak said in defending the controversial tax.

Replying to a question from Liew Chin Tong (DAP-Kluang) during question time to lower the GST rate as it was “dragging down domestic consumption”, Najib said it is a wrong interpretation by the opposition.

“If there is no GST, the country’s economy will be paralysed,” said Najib, who is also the Finance Minister.

He also said Malaysia’s exports, especially in the commodity sectors like oil and gas, oil palm and minerals, have dropped, due to the weakening global economy.

 

TNB answers billing query on GST exemption


We refer to the letter "Puzzled over TNB billing for July to September" by F.C. of Bangsar in the New Straits Times dated October 7th, 2016. Customers like F.C., whose monthly electricity consumption is less than 300 kWh will continue getting Goods and Services Tax (GST) exemption on their electricity bills. These customers, who have yet to receive their electricity bills due to the billing system upgrade, can rest assured that they will still benefit from the first 300 kWh exemption each month, as the GST exemption is prorated. For July to September, where the total billing period is 92 days, the GST exemption is calculated as 92/30 days x 300 kWh, which is equivalent to 920 kWh.In other words, they will be exempted from the GST if their total consumption for the three months are less than 920 kWh.


the source:www.nst.com.my

The hard truth about GST

FOR goods and services tax (GST)-registered businesses who have monthly filing obligations, they would have filed their August 2016 GST return last month and this would have been their 17th GST return since Malaysia introduced this consumption tax on 1 April 2015.

After 17 returns, what is the state of play now? Do businesses know what they need to know to meet their expected GST obligations? With the 2017 Budget announcements coming up on Oct 21, 2016, what can businesses expect in terms of amendments or changes to the GST regime to improve the tax system?

At present, the Royal Malaysian Customs Department (Customs) is in its second month of carrying out audits on GST-registered businesses, targeting 50,000 audits by year end. It is my understanding that, so far, what these audits have revealed is the level of understanding that businesses have in order to comply with its GST requirements is very poor.

'No changes to GST in near term'

HERE will be no changes to the Goods and Services Tax (GST) in the near term as the government aims to embed the tax system into entire consumer spending system, said Finance Minister II Datuk Johari Abdul Ghani. He said with the implementation of GST, the country is on track to meet its fiscal deficit target of 3.1 per cent this year. “GST and the subsidy rationalisation policies were necessary to keep the country’s fiscal deficit on target, especially given the challenging economic climate. It will also ensure the continued reduction of our deficit,” he said during the closing address at the Khazanah Megatrend Forum 2016. Johari said notwithstanding the policies to enhance the sustainability of the country’s fiscal position, which is one of the tenets of good stewardship, the government recognises that the rakyat is facing increasing costs of living. “Addressing the welfare of the rakyat in the short term is necessary to ensure we have a stable foundation before we go after long term goals. Efforts to minimise the cost of living hikes were specifically underlined in the seven National Key Result Areas (NKRA) under the Government Transformation Programme. For example, the government had introduced the 1Malaysia People’s Aid or under the NKRA to help overcome the rising cost of living and cushioning the impact of the GST. Johari said the government has channeled its efforts into geographic inclusion with the push for regional economic corridors as well as construction projects that would enhance the economy and narrow disparities by connecting Malaysians. The introduction of the minimum wage also helped to uplift the most vulnerable segments of the society with benefits that would feedback into the overall economy, he added.

the source: www.nst.com.my

Othman Aziz: No GST hike for Budget 2017

LANGKAWI: Budget 2017, which will be tabled by Prime Minister Datuk Seri Najib Tun Razak on Oct 21, will not involve a hike in the Goods and Services Tax (GST), says Deputy Finance Minister Datuk Othman Aziz(pic).

He said the current 6% tax rate was sufficient to manage the national economy and help the working class.

"We will not burden the people further (by increasing the GST). We can still manage the economy even though we face challenges," he said after launching the Seminar on Integrity, Quality, Innovation and Creativity (Public and Private Sector) here.

He was commenting on claims by certain parties that Najib who is also Finance Minister, would announce an increase in the GST during the tabling of the Budget 2017.