GST in Malaysia – How the Goods and Services Tax affects You

Share:

8843

154

38

Discuss This Article :

107

As the Budget 2014 (tabled on the 25th of October 2013) announcement came, Malaysians awaited with bated breath on whether the government of the day will or won’t finally introduce a Goods and Services Tax (GST) in Malaysia.

For the full lowdown on what was announced in the budget, check out our complete Malaysia Budget 2014 review, as well as our Live Blog: Malaysia Budget 2014 – As it Happened blog post.

Alternatively, we covered the Malaysia Budget 2013 in similar fashion. Take a look at our Malaysia Budget 2013 – How the Budget Can Save You Money article.

Update: A GST of 6% was announced, with the abolishment of Sales Tax and Service Tax effective 1 April 2015.

Read our guide below to find out all about the GST, get the full low down on why it’s being introduced, and what it means for you!

Wait, don’t we already have GST in Malaysia? I’ve seen it in some receipts…

Confusingly, there are 2 other indirect taxes already present in the Malaysian tax system. One of them is the Sales Tax (as per the Sales Tax Act 1972), and the other is the Service Tax (under the Service Tax Act 1975). Combined, they are usually referred to as the SST.

The Service Tax part  is the one that is sometimes confusingly referred to as the Government Service Tax (or “GST”) but it is not the usual use of the GST acronym worldwide, Goods and Services Tax.

Note that the Sales Tax and Service Tax are not to be confused with a “Service Charge” of 10% typically present in the hospitality industry (hotels, large restaurants etc.). This charge is not a tax, and the restaurant typically keeps the 10% (and maybe shares some of it with their staff).

Sales Tax – 10% tax on manufacturers and importers

The Sales Tax of 10% is collected from all manufacturers or importers who have yearly revenue of RM100,000 and above. Licensed manufacturers are to charge 10% sales tax on sales value of their manufactured products and to collect the tax from their customers, and remit to Customs every 2 months.

There are a number of items which have a special Sales Tax rate of 5%, and the following manufacturing and import activities are exempted from sales tax (ie. 0%):

• All exports are exempted from sales tax.
• Live animals, fish, seafood and certain essential food items including meat, milk, eggs, vegetables, fruits, bread, etc.
• Medical and educational equipment including sports equipment, books, etc.
• Photographic equipment and films.
• Motorcycles not exceeding 200cc capacity, bicycles for adult use.
• Machinery for textile industry, food preparation industry, paper and printing industry, construction industry, metal industry, etc.
• Primary commodities including cocoa, rubber, etc.
• Naturally occuring mineral substances, chemicals, etc.
• Helicopters, aircraft, ships and other vessels.

Service Tax – 6% tax on service providers (and RM25-50 / year per credit card)

Previously 5%, raised to 6% in January 2011, the Service Tax applies to certain items in the service industry including food and drink outlets and tobacco. The tax also applies to professional and consultancy services provided by the professional firms or persons such as accountants, lawyers, engineers, architect, insurance companies, etc. and is also remitted to Customs authorities every 2 months.

This 6% Service Tax is the thing that is frequently called GST (Government Service Tax) although in international convention, GST normally stands for Goods and Services Tax.

Adding to the confusion is the recent introduction of a RM50 / year Service Tax for principal credit card holders (per credit card) and RM25 / year for supplementary credit card holders, both falling under this Service Tax nomenclature.

What is the Goods and Services Tax (GST)?

Known across the world as either GST or VAT (value added tax), it is a broad-based consumption tax (tax on your spending!) which affects all parties in a multi-stage taxation system across the value chain from manufacturing to sales, it is based on a tax-on-value-add concept which avoids duplication of taxes. This is in contrast to both the Sales and Service Tax in Malaysia which is just added at one stage (Sales Tax at manufacturer level, and Service Tax at consumer level).

The Goods and Services Tax in Malaysia (GST) was initially mooted by the federal government in 2011 to replace the existing Sales and Service Taxes, but was met with much resistance from the public at large, partially due to the implication of a price hike in essential goods and services, but also partially due to the lack of clarity around the current consumption tax systems in Malaysia.

How does GST work in Malaysia?

In the current tax regime, the 10% Sales Tax (on manufacturing and imports) and 6% Service Tax (on the F&B and professional services industry) is collected by one party (usually the seller) and passed on to the tax authorities.

For example, in the previous 6% Service Tax regime, when you buy a cup of coffee from Starbucks that says RM15 on the menu, you pay RM15.90 (including the current Service Tax of 6%). Starbucks will keep RM15 and pass on RM0.90 to the tax authorities.

In a GST regime (6% GST in this calculation), the following happens:

1. Starbucks buys the coffee beans from the wholesaler to make your cup of coffee for RM10 (RM10+ 6% GST). The Wholesaler keeps RM10 and passes on RM0.60 from Starbucks to the tax authorities.

2. You buy that cup of coffee from Starbucks which the beans were used to make, and pay RM15.90 (RM15 + 6% GST). Starbucks now keeps RM15 and passes on RM0.30 to the tax authorities (RM0.90 – RM0.60). The reason why Starbucks only passes RM0.30 to the tax authorities is because they have effectively already ‘paid’ RM0.60 in tax earlier on the first RM10, and only RM0.30 tax is left to be paid on the RM5 “value-add”.

We have graphically shown this example below.

Why replace Sales Tax and Service Tax (SST) with GST?

The government’s intention has always been to replace the sales and service tax regime with GST and to do so at a GST rate that is revenue-neutral. This means that (when it gets introduced anyway) they don’t expect to collect any more or less taxes than they did before. Why would they bother then?

Well, the GST unit of the Royal Malaysian Customs Department gives us the following reason ‘method of collecting taxes which works better than others’ to explain the need for GST. Economists, meanwhile, believe the government has very rightly approached the GST as a new source of income with a broad tax base as a means to begin to diversify tax revenue sources.

So if the 10% Sales Tax and 6% Service Tax is abolished, does this mean GST will be introduced at a rate of 16% to make this a revenue-neutral exercise?

It might seem like simple arithmetic, but as mentioned before, not all items are subject to 10% Sales Taxes (some 5% and some 0%), and likewise with the 6% Service Tax (and rarely are 2 items subject to both Sales and Service Tax, as one targets the manufacturing and import industry, and the other the service industry). As such, a 16% GST rate (with no exemptions) will definitely result in higher prices across the board!

As a result of this, to make the introduction of GST a revenue-neutral exercise for the federal government, an initial rate of 4-7% had been proposed, with some essential items given a zero-rate mooted as well.

The final rate that was announced on 25 October 2013 was 6% GST, with the following items 0% rated (and thus exempt):

- Essential items such as: Rice, sugar, salt, flour, cooking oil among others
- Public transport (LRT, KTM, Buses)
- Sale and Rental of property
- Electricity consumption up to 200kwH (about RM50), presumably per month

How will the implementation of GST affect me?

As mentioned, the replacement of Sales and Service Tax with GST is intended to be revenue-neutral to the government’s coffers, so in theory, to consumers this may represent a minimal effect to the aggregate prices of everyday goods and services. Lets look at 3 scenarios to see what it means for prices, (1) for items charged with Service Tax, (2) for items charged with Sales Tax, and (3) for items with no Service or Sales Taxes:

6% Service Tax Abolished, 6% GST introduced - Pay less

10% Sales Tax Abolished, 6% GST introduced - Pay less

SST Exempt Items, 6% GST introduced - Pay more

However, the obvious concern here is to make sure that businesses do not take advantage of just the fact that GST has been introduced as a reason to raise prices of goods and services indiscriminately. To this end, the Anti-Profiteering Act has been tabled to enable enforcement against such practices. In theory though, the multi-stage tax nature of the GST should allow the Customs department to aggregate pricing information far more accurately than they do currently, the implied monitoring of this should serve as a deterrent to unscrupulous businesses (will wait and see how things pan out!).

How does the GST affect SMEs in Malaysia?

As the total GST amount is paid for by customers (parts of it effectively paid across the value chain, through GST input credits etc.), businesses are not affected directly by price increases due to GST.

The added cost through the implementation of GST will be due to administration of GST input credits and accounting for GST. Because of this, businesses with an annual turnover of less than RM500,000 are exempted from being GST registered and will thus not be required to collect or pay GST.

So there you have it, if you have any questions or comments do ask us in the comments section below!

Source: http://savemoney.my/gst-in-malaysia-how-the-goods-and-services-tax-affects-you/

GST (Goods and Services Tax)

The single largest and divisive issue in the Malaysia Budget 2014 announcement was the introduction of the GST and abolishment of the 10% Sales Tax and 6% Service Tax (SST) starting 1 April 2015. The GST was such a large issue that we have used a whole article to cover it in our GST in Malaysia guide.

In short, a 6% GST rate was introduced starting 1 April 2015, affecting businesses and the public alike. As a whole, whether prices will increase or not directly as a result of the GST being introduced will depend on the following:

1. Items affected by 10% Sales Tax or 6% Service Tax -> May result in reduction of prices, or at least no change

2. Items which are not affected by 10% Sales Tax or 6% Service Tax -> May result in price increases

3. Items which were exempt from 10% Sales Tax or 6% Service Tax but not exempt from GST -> May result in price increases

The list of exemptions for GST are fairly large, but they generally cover essential items such as flour, cooking oil, sugar, salt, public transport tickets etc.

Source: http://savemoney.my/malaysia-budget-2014-review-gst-cost-of-living-br1m-etc/#gst

Spend more, pay more

Publication: NST

Date of publication: Nov 8, 2013

Section heading: Main Section

Page number: 020

IT is human nature to fear what we do not know. And this is precisely the reason why the proposed introduction of the goods and services tax (GST) struck much fear in ordinary Malaysians. The general misconception is that GST, scheduled to be implemented in April 2015, will translate into a higher cost of living for Malaysians, especially for the low- and middle-income groups, as the prices of goods will escalate.

Some also have the notion that those who are exempted from paying income tax now, that is, individuals earning less than RM3,000 a month, will be taxed.

Such misconceptions, fuelled largely by critics of the government's reformatory initiatives, need to be corrected and the authorities have started on the right foot by embarking on a nationwide programme to educate the public on the benefits of the new taxation system.

Contrary to popular belief, the GST will not favour the rich and burden the poor. In fact, there will be sufficient compensation for the low- and middle-income group to offset the effects of the new system.

These include ensuring that basic needs, such as staple foods, water and the first 200 units of electricity, are zero-rated for domestic users, while mass public transport, education, health, tolls, residential property and financial services are exempted from GST.

In addition, there are programmes, such as the 1Malaysia People's Aid (BR1M), for the low-income group and personal tax reduction for middle-income earners.

As Finance Ministry's GST implementation office tax adviser Datuk Kamariah Hussain notes, GST is a fair, efficient and transparent taxation system that will depend largely on consumers' habits.

In essence, it means that GST is targeted at those who can afford to spend. The more you spend, the more you pay.

It is a better system of taxation compared with the existing sales and service tax (SST) as it is more transparent and enables consumers to know what type of taxes they are paying for and how much.

In fact, experts believe that with the removal of the five per cent sales tax and six per cent service tax, prices can even be lowered because with the elimination of taxes, manufacturers will be able to lower the cost of production and get rebates and pass the savings on to consumers.

To put their fears to rest, Malaysians would do well to educate themselves on GST by attending the roadshows and forums organised by the Finance Ministry and its agencies.

Semak semula tarif selepas kajian selesai

2013/11/08 - 06:31:15 AM 

Oleh Shahrizan Salian

Petaling Jaya: Semakan semula tarif elektrik akan dibuat selepas Kementerian Kewangan menyelesaikan kajian berhubung tahap kecekapan penggunaan tenaga di negara ini.

Ia dijangka dibentangkan kepada umum sebelum akhir tahun ini atau tahun depan. 

Ketua Seksyen Ekonometrik Jabatan Ekonomi dan Antarabangsa Kementerian Kewangan, Dr Khalid Abdul Hamid, berkata kajian yang memasuki peringkat akhir itu dibuat berdasarkan keperluan pengurusan fiskal dan kewangan semasa negara. 

“Kajian itu lebih fokus kepada kecekapan kerana kami mahukan orang awam memahami bahawa tenaga elektrik mesti digunakan secara berhemah, betul dan tidak dibazirkan.

“Hasil kajian akan didedahkan kepada umum pada tahun

ini atau tahun depan,” katanya semasa ditemui di luar Forum Umum Mengenai Pembaharuan Sektor Elektrik Malaysia anjuran Institut Kajian Strategik dan Antarabangsa (ISIS) di sini, semalam.

Beliau sebelum itu menjadi salah seorang ahli panel pada sesi bertajuk ‘Keperluan Semakan Semula Tarif Elektrik dan Kesannya.’ 

Susun semula subsidi

Semakan semula tarif elektrik di Malaysia dijangka akan menjadi gelombang penyusunan semula subsidi kerajaan yang seterusnya, selepas beberapa pengumuman dibuat sebelum ini membabitkan bahan bakar dan gula.

Syarikat utiliti nasional, Tenaga Nasional Bhd (TNB) sebelum ini membayangkan bahawa semakan semula tarif elektrik akan dilakukan.

Ia mengambil kira kenaikan harga gas dan arang batu global.

Kerajaan membelanjakan secara purata antara RM8 bilion hingga RM12 bilion setahun bagi subsidi tenaga elektrik.

Mengulas lanjut Khalid berkata, semakan semula tarif itu tidak akan menghapuskan sama sekali subsidi kerajaan ke atas tenaga elektrik, sebaliknya matlamat subsidi itu lebih terarah kepada golongan yang disasarkan seperti kumpulan berpendapatan rendah.

“Semakan semula tarif itu adalah mesra kepada golongan yang memerlukan. Bagi pengguna lain, konsepnya adalah sama dengan pelaksanaan cukai barangan dan perkhidmatan (GST) iaitu anda perlu membayar lebih tinggi jika menggunakan perkhidmatan dengan lebih banyak,” katanya.

Beliau berkata, kajian yang sedang dilaksanakan oleh Kementerian Kewangan itu diharap dapat mencapai satu peringkat yang dipersetujui oleh pihak pembekal dan isi rumah.

“Setiap penemuan dalam kajian berkenaan akan menjadi garis panduan yang jelas mengenai impak sebenar semakan semula tarif elektrik yang akan datang,” katanya sambil menambah kementeriannya dijangka mendapatkan lebih banyak input daripada beberapa seminar yang akan diadakan bersama agensi lain termasuk Unit Pengurusan dan Penyampaian Prestasi (PEMANDU) serta Kementerian Tenaga, Tenaga Hijau dan Air (KeTTHA).

Naza sokong kereta elektrik

Publication: HM

Date of publication: Nov 8, 2013

Section heading: Main Section

Page number: 063

Kuala Lumpur: Kumpulan Syarikat Naza mengalukan langkah menggalakkan teknologi hijau dengan penubuhan Yayasan Hijau Malaysia, sekali gus menyokong pembangunan kereta elektrik (EV) di negara ini daripada infrastruktur kepada aplikasi teknologi.

Dalam kenyataan dikeluarkan, Naza berkata, agak mengejutkan tiada pengumuman khusus untuk industri automotif dua tahun berturut-turut. Pengurangan cukai untuk kereta hibrid dapat mendorong pembuat dan pengimport kereta jenis itu untuk mencapai tahap kritikal kenderaan cekap tenaga (EEV) untuk mencetuskan perindustrian tempatan.

Katanya, kereta hibrid sebenarnya dapat membuka peluang teknologi EEV dan Malaysia patut mengambil kesempatan untuk menjadikan teknologi EEV yang baru ini sebagai berubah dalam industri automotif negara.

"Mungkin ada sesuatu untuk dipertimbangkan di masa hadapan. Di peringkat global, industri yang lebih mesra alam ini bakal menjadi gah apabila harga minyak terus naik dan kereta EV menjadi kelaziman dan bukannya pilihan alternatif semata-mata.

"Malaysia boleh menjadi hab untuk pembangunan dan pembuatan kenderaan, komponen dan infrastruktur EEV," katanya.

Secara keseluruhannya, Belanjawan 2014 adalah bajet strategik dan mengutamakan perancangan fiskal untuk manfaat jangka panjang yang masih memberi perhatian kebajikan rakyat, khususnya golongan berpendapatan rendah.

Ini penting kerana kedudukan kewangan kerajaan menentukan penakrifan kredit negara. Pelaksanaan cukai barangan dan perkhidmatan GST yang terancang disusuli pengurangan cukai individu dan korporat dari satu hingga tiga peratus adalah langkah bijak dan terancang kerana ia menggalakkan perbelanjaan dan pelaburan asing.

M'sia, ranked 4th, can remain one of world's top shopping destinations if GST implemented well

Published: Friday November 8, 2013 MYT 12:00:00 AM 

Updated: Friday November 8, 2013 MYT 8:02:36 AM

For the last two years, CNN Travel has voted Kuala Lumpur as the fourth best
shopping city in the world. Malaysia is also known as a duty-free shopping haven.
Thus, the implementation of the GST could have an impact on the tourism industry,
Yeoh told reporters at a pre-event press conference on Asia’s grandest luxury
watch and jewellery showcase 'A Journey Through Time'.

KUALA LUMPUR: Malaysia should be able to maintain its position as one of the world’s best shopping destinations if the recently announced goods and services tax (GST) is implemented well, said YTL Corp Bhd managing director Tan Sri Francis Yeoh.

For the last two years, CNN Travel has voted Kuala Lumpur as the fourth best shopping city in the world. Malaysia is also known as a duty-free shopping haven.

Thus, the implementation of the GST could have an impact on the tourism industry, Yeoh told reporters at a pre-event press conference on Asia’s grandest luxury watch and jewellery showcase A Journey Through Time.

“The Government should think out of the box and not only do it (tax refund for tourists) at the airport but also in other designated places,” he said.

Yeoh added that the Government still had time to think ahead and plan properly before implementing the GST in April 2015 so that the country would remain competitive in attracting tourists.

He said redemption counters should be placed strategically to provide convenience for tourists.

Said Yeoh: “London is one of the most expensive but also most awesome shopping places in the world because its value-added tax (a form of consumption tax) was implemented in a friendly, fair and efficient manner.”

He also noted that Kuala Lumpur’s rent-to-sales ratio was still very attractive regionally and malls such as Starhill Gallery had been able to pique the interest of world-class and exclusive brands to set up stores here.

YTL Corp owns Starhill Gallery via its 36%-owned Starhill Global Real Estate Investment Trust or REIT.

“Support from mall owners or operators to help brands finance their capital expenditure would help them stay here and expand, and this would, in turn, result in people getting a fantastic shopping experience,” he explained.

According to him, luxury French brand Louis Vuitton is tripling its original size from 5,000 sq ft to 15,000 sq ft, while Christian Dior is doubling from 5,000 sq ft to 10,000 sq ft in Starhill Gallery.

Higher power prices seen in 1Q of 2014

Friday, 08 November 2013 10:00 

P Vijian 

The government plans to cut fuel subsidies for power producers in the first-quarter (1Q) of 2014, in order to trim soaring subsidies for the energy sector which touched RM24.8 billion to date this year.

Electricity could rise as much as 19%, from 33.5 sen/kWh to 40 sen sen/kWh, if all the subsidies are removed, according to estimates.

Datuk Loo Took Gee, secretary general to the Ministry of Energy, Green Technology and Water, said the reduction in fuel subsidies for the power sector is essential to stabilise the economy.

She said the government consulted with stakeholders in the energy sector and a new power tariff rate would be announced next year.

“You can expect it in the 1Q of next year, so be prepared for it. We need to stabilise our economy and this is one way,” Loo told The Malaysian Reserve in Petaling Jaya yesterday.

Loo, who participated in the “Reforms in Peninsular Malaysia’s Electricity Sector” forum organised by the Institute of Strategic and International Studies in Kuala Lumpur yesterday, said fuel subsidies have to be reduced gradually, taking cognisance of the country’s fiscal condition.

Loo did not say how much more power producers will have to pay for fuel to generate electricity with the subsidy reduction but it is inevitable that Malaysians will pay higher for electricity.

“Everybody must use energy judiciously and prepare ourselves for an increase in energy cost because we have been receiving huge subsidies all these years,” she said.

Based on estimates, Malaysians may have to pay 40 sen/kWh, compared to current electricity price of 33.5 sen per kWh, when subsidies to power companies are cut.

The Cabinet last revised electricity price in June 2011, with a 2% increase in base tariff and prior to that power rates were reviewed in 2006.

The government had previously signalled that it will cut the natural gas subsidy for the power sector because of rising costs. The power sector buys gas at a subsidised price of RM13.70 per mmbtu, compared to market prices that are three times higher.

The subsidy rationalisation is also the first move towards market-based prices as well as a plan to introduce a fuel-cost pass through mechanism so that consumers pay higher or lower electricity prices according to the market.

Under this plan, which is already in place for petrol and diesel, the fuel cost would be reviewed every six months.

Subsidy removal for the sensitive energy sector is part of Prime Minister Datuk Seri Mohd Najib Razak’s fiscal consolidation agenda to trim worrying fiscal deficit and send a strong message to global rating agencies that Malaysia is firm on its budgetary reforms.

Malaysia’s fiscal deficit is at 4% of the gross domestic product (GDP) and national debt is expected to touch 54.8% of GDP or RM541.3 billion this year.

Najib reduced the fuel subsidy for petrol and diesel by 20 sen per litre in September. By reducing the subsidy, the exchequer will save about RM1.1 billion this year and RM3.3 billion annually.

This was followed by a 34- sen sugar subsidy cut in Budget 2014, announced on Oct 25, where Najib also introduced the Goods and Sales Tax (GST).

The GST, slated to begin on April 1, 2015, is expected to generate RM23.1 billion in the first nine months and RM32 billion in 2016.

AEON sets its sight on Sabah, Sarawak

Friday, 08 November 2013 10:00 

Sathish Govind 

Aeon Co (M) Bhd is looking to expand its retail outlets into Sabah and Sarawak to further strengthen its presence in the retail segment in Malaysia, its GM of human resource merchandising division, Audrey Lim Suan Imm, said.

“We are in the middle of identifying location or locations in East Malaysia and we hope to make the necessary announcements by early next year," she said at the launch of the “Okinawa Food Fair” in Petaling Jaya yesterday.

The company had earlier said that it planned to open six outlets between 2014 and 2016 in Johor, Kedah, Kelantan, Perak, Selangor and Terengganu.

On the company’s strategy, Lim said the company, aside from focusing on the major towns in Peninsular Malaysia, is also now looking at expanding throughout the country.

She said this is necessary as it will allow the company to have less concentration of income from a few areas, which will not be good for the company in the long term.

On the outlook of the retail industry and the implementation of the Goods and Services Tax (GST), she said the implementation of the GST will have minimal impact on the company’s earnings.

Lim said from the experience of other countries that had introduced the GST, it was seen that consumers initially would spend less but soon revert to their earlier purchasing habits before the implementation of the GST.

She added that the GST will only come into force on April 1, 2015, and thus will not have any material effect on its earnings for the financial years ending 2013 and 2014.

Prime Minister Datuk Seri Mohd Najib Razak, while unveiling Budget 2014, indicated that the Sales and Service Tax will be abolished to be replaced by a single tax known as the GST, to be enforced on April 1, 2015, at a rate of 6%.

Najib said there will be no GST levied on essential food items, transport services, including toll payments, purchases and rental of residential properties and selected financial services.

On the outlook of the retail sector, Lim said she is positive about the retail sector, adding that consumers are generally looking for convenience in shopping, which AEON retail outlets provide.

Don’t compare GST with others, Malaysians told

Thursday, 07 November 2013 10:00 

John Gilbert 

Malaysians are urged not to compare the proposed Goods and Services Tax (GST) which will be implemented in 2015, with other countries, especially Singapore as the tax system in both countries are different, Royal Malaysian Customs director of internal taxes Subromaniam Tholasy said.

He said there are many negative reports in the media about GST that has fuelled wrong perceptions about the benefits of GST to companies and the people in Malaysia.

“I urge Malaysians not to compare our GST with those from other countries, especially with GST in Singapore, as it was implemented twenty years ago.

“We cannot go that far back to implement the same GST rate as things are different from that time and now, he told delegates at the Budget 2014 — ?Key Budget Changes and their Implications? seminar organised by the Malaysian Institute of Accountants (MIA) in Kuala Lumpur yesterday.

He said the GST which will be implemented in April 2015 is a ‘beautiful’ tax system that will benefit Malaysian companies and he was glad that Malaysia is finally adopting the move.

“I urge everyone to study the GST system first,” he said upon presenting his paper titled “GST 2015 — What to Expect,” at the event.

During the panel discussion, Taxand Malaysia Sdn Bhd co-founder and chairman Dr Veerinderjeet Singh said with the implementation of GST, the government should consider reducing corporate and personal tax rate.

“The GST would take two to three years to stabilise and when it does, the government should consider reducing corporate and personal tax in the next four to five year time,” he said during the discussion.

The GST is implemented by following the good model and best practices that has been put in place by other countries, ministry of finance senior deputy secretary for tax analysis division Khadijah Abdullah said.

“The GST will remain as a “good” tax whereby the government will be able to collect more tax revenue,” she said at the panel discussion.

The Budget 2014 seminar was organised by MIA and the Malaysian Association of Tax Accountants (MATA) and hosted a list of prominent speakers namely, deputy under-secretary for economics and international division in the Ministry of Finance Dr Chen Chaw Min, who presented a paper titled “2014 Budget Tax Proposal: The Economics Outlook and Implications.”

A paper titled “2014 Budget Highlights” was presented by Inland Revenue Board of Malaysia director of dispute resolution department Abu Tariq Jamaluddin while the panel discussion session was moderated by Deloitte Malaysia country tax leader Yee Wing Peng.