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Tuesday, 10 January 2017

(The Edge Financial Daily) Govt to collect RM42b in GST this year

KOTA KINABALU: The government, via the Royal Malaysian Customs Department, expects to collect RM42 billion in goods and services tax (GST) this year compared with RM41 billion last year, said Deputy Finance Minister Datuk Othman Aziz.

Othman said the target could be achieved through the cooperation of all parties in the face of the worldwide economic slowdown, which Malaysia was not spared.

“In the face of the economic slowdown now, we expect a small increase in [the] GST collection compared to 2016. This is also a reflection of the department’s efforts to achieve the target,” he said.

Othman said this to reporters after witnessing the ceremony to hand over the Sepanggar Customs Department’s housing project here yesterday.

The RM54 million project involves the construction of a three-block building with 120 units. The project was completed on schedule, result-ing in savings of RM6 million.

He said although there were com-panies which failed to follow the GST directive, this was small at about 5%.

“Action has been taken against them, including compound fines to ensure they follow the directive,” he said.

On the sales of duty-free items — cigarettes and liquour — in Langkawi, Federal Territory of Labuan and Tioman, Othman said the effects of the sales were positive and encouraging.

“This will minimise leakages in the government’s tax revenue from the sales of these items,” he said.

He said Langkawi, Labuan and Tioman had 56, 21 and three duty-free outlets respectively. — Bernama