Something is amiss in this sector for refund of GST.

Something is amiss in this sector. Joshua

GST Could Help Attract More Tourists

By Erda Khursyiah Basir

KUALA LUMPUR, (Bernama) -- The Tourist Refund Scheme (TRS) under the Goods and Services Tax (GST) to be introduced in April 2015 can contribute to greater number of tourist arrivals.

The Dean of the Hotel Management and Tourism Faculty at Universiti Teknologi MARA (UiTM) in Shah Alam Assoc Prof Dr Mohamad Abdullah Hemdi opined that as TRS allowed tourists to reclaim the GST paid, they would not curtail on their spending during their stay in the country.

"TRS is only applicable for the goods taken out of Malaysia by the tourist and does not apply on services or products paid for and utilised in Malaysia including hotel and food bills, and etc.

"Tourists should ensure the tax invoice is handed over with the purchase receipt to support the refund process. This scheme, however, is only applicable for tourists who use air transport and have spent a minimum of RM300 including of taxes at approved outlets," he told BERNAMA.

BEING COMPETITIVE

According to the Royal Malaysian Customs GST Division Deputy Director, Tan Sim Kiat, the department is now in the process of choosing the TRS agents, who were responsible in identifying the outlets to refund the tax to the tourists.

The agents would identify the outlets to establish partnerships before GST is implemented on April 1, 2015.

"After the outlets are identified, the visitors could head to the respective outlets to buy duty free goods. When they buy the duty free goods to take back with them, they can reclaim the taxes, that will be refunded by the TRS agent," he said when met at the 2014 National GST Conference, in July.

Mohamad Abdullah said zero rated goods (after the TRS) would make Malaysian goods more competitive at the global stage.

The tax rebate promotion for tourists and an efficient tax reclaim process will help make Malaysia a shopping destination and draw more tourists.

"GST will help reduce costs in conducting business in Malaysia and at the same time will enhance the competitiveness of the country's tourism sector.

"Though the GST rate of six percent in Malaysia is reasonable, we should not forget our neighbours who may try to enhance their competitiveness by bringing down the tax rate in drawing visitors to their respective countries," he said.

THE RATES STREAMLINED

An international business management lecturer at Universiti Utara Malaysia Prof Dr Mohamad Hanapi Mohamad said in Europe, visitors were allowed to reclaim their Value Added Tax (VAT) on their purchases and local services.

Therefore, he opined that TRS could be implemented effectively if all purchases were done with receipts and invoices that state the VAT of GST rates.

Speaking of the GST rates in Malaysia, Mohamad Abdullah said the six percent is the lowest among the ASEAN nations and it could drive the nation towards greater competitiveness.

Nonetheless, he admitted that the rates could affect the tour operators' costing, when the additional costs were transferred to the tourists thus pushing up the price of tourism services.

"However, there is also a likelihood that the GST cost could be absorbed by tour operators so that they could compete," he said adding that the tourism industry is highly sensitive to pricing wars.

THE INDUSTRY STAKEHOLDERS

Touching on ways to draw more tourists after the GST comes into force, he said the main thing that one has to ensure is that the tour operators avoid raising prices indiscriminately on the pretext of GST.

He said the accurate information and a transparent and an effective GST management would provide a helping hand for the industry.

The Ministry of Tourism and Culture, he said should cooperate with the GST Monitoring Committee to ensure tour industry players avoid manipulating tourists with wrong information on GST.

"I support the government's effort of establishing the GST Monitoring Committee in ensuring GST implementation. The committee should ensure the policies, laws and guidelines relating to GST are sufficient and should monitor the implementation by the respective agencies," he said.

--BERNAMA

Reveal 85 GST-exempted items, gov't urged

Reveal 85 GST-exempted items, gov't urged


The government must list all 85 items that will be exempted in the impending Goods and Services Tax (GST) with immediate effect so that the implementation of the new tax system is transparent, Solidariti Anak Muda Malaysia (SAMM) said today.

http://www.malaysiakini.com/news/274591

some good reflections

1.                   Impact of GST to Sabah is Got Sabah Trap leading to Got Sabah Tragedy!!!

2.                    Impact of GST to Malaysia is Government Self Trap or Government Self Tragedy.

3.   With GST, it is a whole different approach to do business with possible adverse impact arising from withheld consumers spending for an initial period that is enough to tilt the trend towards business closure resulting in decline in earning and many more become jobless.

4.The immediate challenge for various businesses is the hurdle to register or not to register or face the hefty penalty hence it is both costly to register or otherwise in various practical scenarios. 

5.So have anyone done a fully researched paper on how GST at various rates impacting Malaysia vis-à-vis Sabah

6.The minimum wages for basic workers to survive depending on the rates of GST?

6.1If wages need to be increased, how much would be sufficient?

7.The level of prices increases especially for the essential items depending on the GST rates?

8.Would fuel attract GST?  If so how would this impact the economy as rural Sabah would be hard hit?

9. Would houses attract GST and if so how the prices go up especially those houses under construction when all raw materials would go up in price too?
10. While GST inputs and outputs would be offset in a two or three month cycles, how would such cycles affect the cash flows of the businesses?
11. At the moment, Government Service tax collected in Sabah is retained in Sabah and would GST be retained in Sabah and if so how much would likely be retained in Sabah possibly to bring reliefs to some sectors?
12. If GST collected in Sabah is retained in Sabah, would there be a restriction that such increased amount be disallowed to be applied for development projects unrelated to trade for matching purpose?
13. If GST is implemented, all existing taxation like corporate and income taxes would be adjusted downwards and how would this be addressed with the initial burden of GST?
14. It maybe inevitable that black market would thrive once GST is implemented and is there any acceptable level before the disruption bites into the economy?

15. Corruption for the implementation agency can be a factor and is there any provision for this to be thwarted?

16. For Sabah is there a model for GST given the prevailing economic indicators at various rates of GST in the context of productivity and consumption and the level of risks that the economy can be adversely affected with hardship for most people especially Sabah people are already finding it hard.  If there is no model done, then Sabah should not see GST in the immediate future.

17. Do we have certain specific GST schemes for certain businesses like sundry shops, secondhand car dealers, contractors/sub contractors with Government agencies?  Too costly and troublesome to issue bills for each sale for the output tax like restaurants and supermarket/minimarket.

18. How would the 6% impact the Malaysian budget in 2015 and beyond as Government and its agencies are also consumers?

19. GST collection and debts?  Not all invoices are collected in time to file the GST returns and some may turn out to be bad debts.  How do the registered companies concerned account for this?

20. Manual system is allowed but the Government always emphasis electronic system to do filing.  Manual system would give the marginal companies over the threshold some confidence in terms of costs and management capacity.

21. In the uncertainty of entry of GST, it is up to the business communities to re-invent themselves to be competitive in a range of approaches, with the threshold and the penalties in mind.  Is it worth the costs to get registered and in preparedness to be the collector of GST when the level of business post GST is uncertain.

I can offer some good professional service as I had the hand-on experience when Great Britain first introduced VAT in the early 1970s.   Joshua Kong 6013-8394513

so far about 500 companies registered with GST

BERNAMA › NEWs

More Than 3,000 Expected To Attend GST Information Programme Next Week

KUALA LUMPUR, Sept 3 (Bernama) -- Over 3,000 participants are expected to attend the National Goods and Services Tax (GST) Information Programme, which will be launched by Prime Minister Datuk Seri Najib Tun Razak at the Putra World Trade Centre on Sept 10.
Deputy Finance Minister, Datuk Ahmad Maslan, said the programme participants would include those from government-linked companies, government agencies, Barisan Nasional component party leaders, representatives from non-governmental organisations, youth representatives and students.
"Najib will give his keynote address and explain the GST in relation to the economy in general," he said at a media briefing after giving a briefing on GST at Universiti Teknology Mara here today.
Ahmad Mazlan said he and the Royal Malaysian Customes Department head, Datuk Seri Khazali Ahmad, would also participate in the forum as panel members.
Meanwhile, at another function, Ahmad Maslan said companies which had yet to register for GST scheme were advised to do so fast as the government would not postpone its implementation.
He said the Finance Ministry expected 2,000 firms to register for the GST scheme a day, from between 1,000 and 1,400 a day previously.
"As of Sept 2, a total of 24,429 companies had already registered for GST," he told a media briefing after addressing key GST issues to tenants, entrepreneurs, biopreneurs and business associates at Technology Park Malaysia Corp Sdn Bhd (TPM), Bukit Jalil.
TPM has also arranged special registration counters manned by officers from the Customes Department for qualified businesses to register on the spot.
TPM chairman, Datuk Nasarudin Hashim, said the initiative of TPM was to assist the government in creating greater GST awareness among its community.
He said since its inception, TPM has contributed about RM6.5 billion to the economic development of the country, accounting for about 1.2 per cent of the gross domestic product.
-- BERNAMA

16. Syed Mokhtar

Story behind Syed Mokhtar’s ‘RM2.25 billion tax-exempt’ Bernas deal revealed, says PKR MP

 

Published: 15 June 2014

Ismail Sabri had revealed in Parliament last week that the duty on rice imported from 2008 to last year was waived, in a move alleged to benefit tycoon Syed Mokhtar Albukhary. - The Malaysian Insider pic, June 15, 2014.An innocuous written reply in Parliament has provided a peek into the cosy relationship between the Najib administration and Malaysia's best-known businessman, Tan Sri Syed Mokhtar Al-Bukhary.
The Parliament learnt that Putrajaya accepted a personal letter from the businessman as a guarantee he would look after the national interests of rice in Malaysia.
Putrajaya also waived RM2.25 billion worth of duty on rice imported between 2008 and 2013 by Bernas, according to PKR Alor Star MP Gooi Hsiao Leung.

Gooi said Agriculture and Agro-based Minister Datuk Seri Ismail Sabri Yaakob made this revelation in Parliament in a reply to his question last week. "The latest figures provided by the United States indicates that Malaysia's rice imports for this year will increase by 24% or 1.1 million tonnes."
"This means that tycoon Tan Sri Syed Mokhtar Al-Bukhary will continue to reap huge profits through his control of Bernas," Gooi said in a statement.
Padiberas Nasional Berhad (Bernas) holds the monopoly on rice imports and is exempt from paying import duty on rice.
Following a concession agreement signed with Putrajaya in 2011, Bernas extended its sole national importer status for rice until 2021.
Gooi said Bernas was a strategic national asset tasked with the responsibility of protecting the interests of rice farmers and consumers.
"It was a gross breach of public interest to have allowed Syed Mokhtar to delist Bernas based on a legally worthless private letter," he said, referring to a letter written by Syed Mokhtar, which was disclosed by Ismail in Parliament on March 23.
In the letter, Syed Mokhtar gave his personal undertaking that he would guarantee the national interests of rice in Malaysia.
In the relisting of Bernas, 10% shares of Bernas IPO will be allotted to Putrajaya for the National Farmers Association (Nafas) and the National Fisherman Association (Nekmat).
Syed Mokhtar also pledged annual contributions to the welfare programmes of Nafas and Nekmat for five years or until the relisting exercise of Bernas was completed.
Pouring cold water on Syed Mokhtar's undertakings, Gooi claimed the letter was not legally enforceable nor binding on Bernas.
"This is because Syed Mokhtar is not a party to the concession agreement signed between Bernas and Putrajaya.
"The letter also does not state any deadline or time frame for the relisting of Bernas. So will it take five years? 10 years?" he said.
Gooi pointed out that with no definite date for relisting, Bernas would not be subject to public scrutiny or the supervision of Bursa Malaysia.
"Putrajaya's actions in the way they have allowed Bernas to be delisted is tantamount to unmatched cronyism," he claimed. – June 15, 2014.

 

15. 950 items

950 items under GST

Published on: Friday, August 15, 2014

Kota Kinabalu: The Consumer Price Index (CPI) in the country is expected to temporarily increase by 1.48 per cent of the inflation rate following the introduction of the Goods and Services Tax (GST) next year.
Deputy Finance Minister Datuk Ahmad Maslan said, however, the ministry projected that CPI will stabilise after a few months.
"This projection is based on our studies in other countries that have already implemented GST or Value Added Tax (VAT) as it is called in other countries. In countries like Canada, Singapore and Australia, CPI increased for the first quarter after it was introduced.
"But after it reached a certain level, CPI went down again," he said during a talk on GST at the Sabah Federal Civil Service Assembly, here, Thursday.
He also reiterated the fact that essential goods such as basic food, piped water and the first 200 units of electricity consumption to domestic consumers are zero-rated.
Other items which will be zero-rated under Malaysia's GST include sea produce, meat, poultry, education and healthcare.
"This is Malaysia-style GST. We do not want to burden the people," said Ahmad.
There are 950 items which will be taxed under the GST. The impact on prices will vary with some items will be cheaper, some will stay the same while others will be more expensive.
"For example, furniture. Actually, furniture prices will go down because right now, they are paying 10 per cent tax and after GST, they will only have to pay six per cent.
"But people are using GST to market their products. I have seen a big banner outside a furniture shop, 'Buy Now Before GST'. I told my men to ask the owner to take the banner down because it is a bad marketing and dishonest," he said.
The Government, through its agencies like the Customs Department and Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK), will be monitoring the situation closely in the days following the implementation of GST and will arrest those who intentionally raised the prices of their goods without valid reasons.
Ahmad said the Government guaranteed that prices of items such as rice and sugar will not increase after GST and the number of enforcement officers in the Customs Department and KPDNKK will be increased to ensure anti-profiteering laws are followed.
He also addressed concerns by some quarters in Sabah and Sarawak who said that State governments will lose out in terms of monetary gains following the introduction of GST.
"I have been asked about this by policy makers from both states actually.
To clear up the matter, state governments can continue to collect taxes. In fact, there are only two taxes involved - the Crude Palm Oil (CPO) and entertainment duty.
"Even after GST is implemented, both of these taxes will be continued," he explained.
The Government, he added, will not delay in its plan to implement GST next year and advised the people to stop asking about postponing it.
"I know, the Government always give opportunities for the people when it comes to implementing any policy. We delay giving compounds, we extend the period for BR1M.
"But I assure you, the Government will not delay the implementation of GST which will be on April 1 next year," he warned.
Therefore, he continued, business owners who make RM500,000 or more in annual sales must register their companies before the deadline on Dec 31 this year or risk being compounded.
Registration can be made online and takes only a few minutes at the ministry's website at http://www.treasury.gov.my.
All the information, said Ahmad, can be found at the website and the government will not hesitate to fine those who failed to adhere to the laws.
"Ignorance cannot be an excuse. All information is at your fingertips.
If you said your company does not have Internet, I think that is too bad.
What kind of company do you have anyway?" he said.

14. A horse behind the cart- as usual

Who are the advisors to the half past 6?  Joshua

 

Muhyiddin Announces Special Committee To Tackle Living Cost

PUTRAJAYA, Jan 15 (Bernama) -- Deputy Prime Minister Tan Sri Muhyiddin Yassin on Wednesday announced the formation of a Special Committee To Tackle The Cost of Living, chaired by him, to handle issues on the rising cost of living and goods in an integrated manner.

He said the setting up of the committee was an extension of the National Key Result Area (NKRA) on Tackling The Cost of Living, whose scope and functions had been widened, which was decided at the Cabinet Meeting on Jan 8.

He said that among the roles of the committee was to coordinate the policies and programmes of the various ministries and agencies involved in easing the burden of the people.

He said it would also collaborate with the Fiscal Policy Committee chaired by Prime Minister Datuk Seri Najib Tun Razak, particularly in scrutinising the government's taxation policy and subsidy rationalisation.

"The outcome of the study would be announced to the public through the various media to facilitate the people in making comparisons and to understand the actual reality on the price increase," he said at a media conference at the meeting room of his office.

Muhyiddin said this included the study on rising prices which were not linked to fiscal consolidation measures, but was due to the issue on the market structure, including the supply issue and the marketing system.

He said the committee would also implement sectoral studies on the actual effects of the rising cost of inputs on the increase in prices of essential goods and subsequently to make a logical and appropriate projection of the increased prices.

He said the committee would also engage the consumers associations and representatives of the business sector as well as non-governmental organisations that were related to the supply of goods and services as well as other factors that determined the prices of goods.

Muhyiddin said the Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK) would act as the Secretariat and steering committee, while the other ministries and relevant agencies such as the Ministry of Agriculture and

Agro-based Industry, Ministry of Transport and so on would be appointed as members.

Meanwhile, the Deputy Prime Minister said the government also decided to create a special laboratory for two weeks beginning today to study measures to ease the burden of the people.

It also had the role of carrying out a holistic study, fiscal consolidation needed to ensure that the people were not burdened, as well as the type of aid that could be channelled to the people.

"Besides representatives of the relevant ministries and agencies, other members of the laboratory are representatives of the consumers associations, the industry, academicians, students and so on who would provide inputs and their opinions in tackling the cost of living," he said.

Meanwhile, Muhyiddin said the enforcement of the Price Control and Anti-Profiteering Act would be enhanced to take more effective action on traders who took the opportunity to raise prices indiscriminately.

In addition, he said other measures that were being planned were efforts to promote or relaunch the Kedai Rakyat 1Malaysia concept, Sarapan 1Malaysia menu, besides increasing the frequency of getting on the ground for every ministry.

"At the moment, the Ministry of Domestic Trade, Cooperatives and Consumerism is tabling a report to the cabinet on all aspects of the prices of goods," he said.

-- BERNAMA