
The Royal Malaysian Customs Department has replied to the 106 questions posed to them recently.
The questions, pertaining to the Goods and Services Tax (GST), was handed to the department during an anti-GST protest at the Customs Department headquarters in Kelana Jaya on Monday.
During the rally, the protestors demanded answers to 106 questions on GST in which the Customs assured that the answers would be uploaded onto their official website.
One of the questions posed was why lobsters were not imposed the 6% GST, but canned sardines were.
“Lobsters are classified as basic food under “crustaceans”, which were classified as “zero rated”, unlike sardines which is processed food and will be subjected to GST,” the department said.However, when asked to explain how goods were determined as “zero rated”, Customs replied that the decision was made based on goods and services that were deemed as “basic necessities and critical services”.
There were many talking points from the response to these questions. For instance, Customs confirmed that only Ron 95 petrol and diesel would be exempted from GST.
Liquefied petroleum gas (LPG) weighing 14kg and below would be exempted.
The department stated that under the GST (Relief) Order 2014, the Yang di-Pertuan Agong, Sultans, Negeri Sembilan royalty, Yang Dipertua Melaka, Pulau Pinang, Sabah and Sarawak are exempted from GST for everything except petrol.
All residential home purchases including low-cost housing are also exempted from GST.
The department had also reiterated that with the implementation of GST, the Sales and Services Tax (SST) will be scrapped.
According to one of the answers in the list, the money collected from GST would go to a consolidated fund and would be spent on national development such as:
- Learning and teaching programmes — RM60 billion;
- Health facilities and services — RM23.3 billion;
- 1Malaysia People’s Aid (BR1M) — RM4.9 billion;
- Infrastructure and facilities — RM4.5 billion;
- government scholarships — RM3 billion;
- Funding to poor families, children, elderly, disabled — RM1.2 billion; and
- 1Malaysia Book Voucher (BB1M) — RM325 million.For companies whose revenue is below or on the threshold of RM500,000, they will have the option of not registering and collecting GST but are however encouraged to register anyway. After the registration has been approved the company must stay in the GST system for no less than two years.
Answering other questions, the department stated that no country had ever proven whether implementation of GST had managed to lessen the gap between the rich and poor while the additional amount for BR1M was a short-term benefit to households with income less than RM3,000 a month.
Customs also confirmed that inflation was set to rise by 1% after the implementation of GST from the 3% currently.
Meanwhile, the fare increase for public transport of between 23% and 67% had nothing to do with GST, said the department in its reply.
It said GST had minimal effect on the cost of public transportation as public transport were exempted from from GST, which is lower than the Sales Tax and Services Tax (SST).
The fare increase for taxi has been proposed to the Land Public Transport Commission (SPAD) and studied long before the introduction of GST.
The Customs Department also denied allegation it was too corrupt to administer the collection of GST, saying it was always on the lookout against corrupt elements.It was also proactive in preventing graft, with measures such as emphasising positive values, job rotation and disciplinary action against errant officers.
On religious matters, it said bibles and holy books were exempted form GST, although prayer materials and paraphernalia are not.
Public transport, including school bus services, will also be GST-exempt.
Most other school related items and services purchased from GST-registered traders are not exempted from the tax, including school uniform and stationery.On concerns that the GST will be increased, the department noted that the sales tax and services tax introduced in the 1970s had only been increased after 10 and 36 years respectively.
It said that several factors were taken into consideration prior to any increase, such as economic stability, the robustness of GST system in place and level of public acceptance.
At the same time, it replied that even if the 1Malaysia People’s Aid (BR1M) was cancelled, GST would still go ahead.For zero-rated items such as rice, the department clarified that GST-registered traders could claim back GST from the government on related costs such as rice transportation.
On education, it said that only basic fees are GST-exempted while additions such as tuition would be subjected to GST although GST-registered merchants can claim for refund on GST paid towards business expenses.Public can direct complaints on corrupt Customs Department officers to
http://aduan.customs. gov.my/aduanawam/ or to the Malaysian Anti-Corruption Commission (MACC) at
http://aduan. customs.gov.my/aduanawam/.
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Reporthttp://www.therakyatpost.com/news/2015/03/...posed-by-group/Tak nampak pun military budget dlm GST ni.... sedihnye