KUALA LUMPUR, April 28 — A total of 26,000 companies and business entities have yet to settle their Goods and Services Tax (GST) arrears amounting to nearly RM2.1 billion, Utusan Malaysia reported today.
Customs director-general Datuk Zazuli Johan told the Malay daily that even though the consumption tax was abolished in 2018, his department will do all it can to retrieve the revenue the country is owed.
He said the RM2.1 billion in arrears include the penalty imposed on all companies and business entities that were late in making GST payments implemented in 2015.
“We have also taken action through prosecution in court in addition to travel restrictions of company owners who failed to pay up the tax arrears.
“Last year, we found that more than 10,000 business entities had settled GST arrears, including a penalty amounting to RM800 million,” he was quoted as saying.
Zazuli said the Customs Department introduced the Remission and Surcharge Reduction Programme under the Goods and Services Tax Act 2014 (ACBP 2014), the Sales Tax Act 2018, the Service Tax Act 2018, the Tourism Tax Act 2017 and the Departure Levy Act 2019 to help industries that are affected by the current economic situation.
He said these programmes provide a penalty or surcharge reduction of up to 100 per cent subject to the conditions set from last February 1 until September 30.
He said affected businesses are encouraged to make the payments voluntarily through advisory services and programmes organised.
“This can help the companies involved manage and improve the level of compliance in addition to avoiding tax arrears in the future.
“This is also to avoid enforcement actions being taken against them as well as ensuring that the companies involved come forward to pay GST arrears and penalties,” he was quoted as saying.
He also said that this year, the Customs Department is allowing a temporary exception for those who have been blacklisted from travelling abroad, with conditions.
“Individuals and companies that have been blacklisted are encouraged to check their travel status in advance via https://sspi.imi.gov.my/sspi/ to find out the status of travel restrictions imposed,” he was quoted as saying.
He added that companies affected can visit their nearest Customs offices to find out more about the surcharge reduction programme offered and how it applies to them.
The GST is a consumption tax that was rolled out by the past Barisan Nasional government under Datuk Seri Najib Razak on April 1, 2015 that was met with huge backlash.
It was abolished in 2018 when Pakatan Harapan first took federal power following the 14th general election.
Incumbent Prime Minister Datuk Seri Anwar Ibrahim said on February 24 that his government has no plans to bring back GST at the moment.
But Anwar who is also finance minister has instructed government agencies to go all out against tax evaders to replenish the country’s coffers.
