The Royal Malaysian Customs Department will be the agency in charge of administering the GST. GST is defined as a multi-stage tax payable by all the intermediaries in the production and distribution chain, with the tax burden ultimately borne by the end consumer. GST is a much broader tax than a sales and service tax; it operates on a negative concept, and all goods and services are therefore subject to GST unless specifically exempted.
Businesses will have to yield an increased responsibility for ensuring compliance with GST and, hence, prepare themselves for the implementation of GST.
Among others, foreign businesses should take the following actions: review commercial contracts and internal supplies, update accounting systems retrain employees so that they can deal with GST and ensure a clear understanding of the relevant conditions for qualifying for a GST rebate.
The Malaysian government has admitted that the GST will result in a nominal increase in prices but does not expect consumers to be too affected since they are only required to pay tax on goods and services used.
The government is also warning businesses not to raise their prices in reaction to the GST because they prices could find themselves subject to the Price Control and Profiteering Act.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.