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‘Govt will force companies to register for GST’

January 24, 2015

Deputy minister says penalties of RM2,000 to RM15,000 will be imposed.

KUALA LUMPUR: About 50,000 companies who missed the December 31 deadline to register for the Goods and Services Tax will face penalties of RM2,000 to RM15,000, the government said today.
Deputy Finance Minister Ahmad Maslan said the government would force companies to register, with a minimum RM2,000 penalty for compounding their missing the compulsory registration deadline. “If you do not want to register, we will register for you and a maximum of RM15,000 will be compounded. The company name and other information are available at the Inland Revenue Board,” he said.
Speaking on BernamaTV on Friday night, Ahmad said the overall response to the GST had been “amazing” – the government initially expected only 150,000 companies to register but the number had gone to more than 305,000 companies.
GST will be implemented from April 1 at the rate of six per cent, replacing the current Sales and Services Tax.
Ahmad also said the government was ready to make further revisions to the 2015 Budget, including deferring the implementation of high-impact mega projects, if global oil prices continue to plunge.
However the government’s projections were that oil prices are not likely to dip below US$40 per barrel. “The government and most economists expect oil prices to hover around US$40-US$70 per barrel, and we choose US$55 per barrel as the average oil price for the year,” he said.
All current mega projects such as the Pan Borneo Highway, the two mass transit lines in the Klang Valley, and the Kuala Lumpur-Singapore High Speed Rail will continue.
The Pan Borneo Highway would catalyse development in Sabah and Sarawak and should not be delayed again because it could change the economic landscape along the highways.
“Similarly, the MRT and high-speed train projects will be catalysts for economic growth. Creating a high-speed rail will involve hundreds of economic activities involving various industries including manufacturing and services,” he explained.
– Bernama