KUALA LUMPUR, Nov 13 — Finance Minister II Datuk Johari Abdul Ghani today admitted that some companies had shuttered after the implementation of the Goods and Services Tax (GST).
In his 2018 Budget ministerial winding up speech, Johari however said that he was not at liberty to divulge details as such cases were under investigation.
“There is, YB, there is. This is a subject of investigation, so I cannot reveal.
“But there are many reasons which they give, such as old age, not interested to do business, want to hand over (the business) to others, set up a new company.
“So, there are going to be very legalistic issues. So what we do, we say, okay. If you want to close down, fine. But we do an investigation before that,” Johari told the Dewan Rakyat.
He was replying to a query from Barisan Nasional’s (BN) Rompin MP and parliamentary Public Accounts Committee (PAC) head, Datuk Hasan Arifin, who had him to state if there were companies which were forced to close down after the government decided to abolish the Sales and Services Tax (SST) and to implement GST.
According to a Finance Ministry report last month, the Malaysian government is expected to collect RM43.8 billion in GST next year, which is projected to account for 18.3 per cent of its entire estimated revenue of RM239.9 billion.
In the Economic Report 2017/2018 released last month, the ministry expects higher amounts of revenue from indirect tax such as GST, import tax and export tax, mainly due to better GST collection.
The GST kicked in on April 1, 2015 at a rate of 6 per cent, replacing the SST regime in Malaysia and was introduced with 553 types of goods and services zero-rated and another 25 being GST-exempt.