Saturday, August 27, 2016

GST refunds within two weeks

PUTRAJAYA: Traders and businesses can expect speedier Goods and Service Tax (GST) refunds from the Customs Department.
Customs deputy director-general Datuk Subromaniam Tholasy said for the April taxable period, the department managed to return 20% input tax refunds within 14 days, adding that this was increased to 41% in July.
He said refunding input tax within 14 days was a world best practice, which only a few countries have managed.
“This is something to be proud of. We improved our processes and gave priority to important issues and engaged with the relevant industries,” he said in an interview to mark six months since the implementation of GST on April 1.
Subromaniam said the department received about 20,000 refund claims each month and 55,000 quarterly, with 390,000 companies to contend with under GST.
“We only had 63,000 companies under the previous SST (Sales and Services Tax) system,” he added.
Subromaniam said the department would conduct a desk review for doubtful and suspicious claims, with his officers contacting companies for further verification.
He also regretted that some quarters had politicised issues involving GST.
“Some people say GST should be reduced or abolished. People compare us with Singapore and how they started with 3% but that was for everything.
“That is equivalent to more than 5% of the Malaysian model. Their current 7% (tax) is equivalent to more than 10% of the Malaysian model,” he said.
Subromaniam added that the Malaysian model had a lesser impact on the low-income group.

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