The National ICT Association of Malaysia's (Pikom) Goods and Services (GST) survey revealed that 75% of local businesses accepted the new GST system as a better form of indirect tax
compared to the current Sales and Service Tax (SST) model.
Chairman Cheah Kok Hoong said the survey indicated that organisations had some basic knowledge about the GST system, including the zero-rated supply, exported goods exemption, non-compliance regulation, penalties and more.
"This is likely attributed to the effective advocacy and awareness programmes by the government, together with selected members of the private sector," he said in a statement today.
The survey, "GST Impact on Businesses', conducted nationwide last month was to identify market sentiment and readiness for the GST system to be enforced on April 1, 2015.
However, the survey also reported that less than 50% of the organisations admitted they are ready to adopt the new GST system from the perspective of workforce, IT system and business processes.
"Most shockingly is that as of now, less than 25% of employers have sent their ICT employees to be trained to implement and leverage the new GST system," Cheah said.
He noted that local businesses, especially small and medium enterprises (SMEs), have started feeling the pressure to expedite the GST system implementation process to meet the deadline.
"Many organisations have only allocated a limited budget, and possessed inadequate resources and knowledge, to properly ready themselves to face the far-reaching operational and financial impact of a new tax system on their business.
"The survey results also show that more than 60% of local organisations acknowledged that the GST system will significantly impact their revenue," he said.
He said the survey highlighted that Malaysian organisations are looking for more alternatives for financial and training support from local companies and government agencies to achieve a better success rate for their GST system
"Despite the challenges, organisations are still proactively making efforts to keep the GST project moving, as they are aware of its importance and impact on business on a long term basis," Chead added.
Pikom's survey involved over 1,000 local organisations nationwide, primarily the IT fraternity and other businesses across industries. – Bernama, April 29, 2014.