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Thursday, November 21, 2013

‘Exports will be exempted from GST’

| November 19, 2013

Deputy Finance Minister Ahmad Maslan says the government aims to increase exports by excluding the manufacturing sector from the 6% GST and offering various aid to the small- and medium-sized industries.

KUALA LUMPUR: The government will exempt all exports from the 6% Goods and Services Tax (GST) in 2015 to boost the manufacturing sector, said Deputy Finance Minister Ahmad Maslan.

Ahmad Maslan also said the government in the Budget 2014 had promised various aid for small- and medium-sized enterprises (SMEs) and the prime minister was actively looking for new markets through his visits to emerging countries.

“With that, we hope that our exports will soar,” Ahmad Maslan told Ahmad Hamzah(BN-Jasin) in the Dewan Raykat today.

Although Ahmad Maslan did not explain the exemption, according to the Custom Department, GST is meant to be a local consumption tax.

“The exporter may recover the GST incurred by crediting the amount on his output tax,” it said.

The department said the GST was charged on raw materials and components but the exporters could claim all input tax on the exports.

Ahmad also said the recent murder of a Taiwanese tourist and the abduction of his partner in Pom Pom Island, Sabah, by Abu Sayyaf terrorists, would not affect tourism because there were still plenty of other sites to visit.

He said Kuala Lumpur was ranked fourth among the world’s top shopping destinations and still attracted tourists, and “KL is very far away from Pom Pom Island”.

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