The ministry said these traders had unlawfully charged and collected the tax.

“In this regard, any trader who is not registered but has charged Sales Tax or Service Tax must return those amounts to the JKDM in accordance with the applicable legal provisions,” the ministry said in a written reply to the Dewan Negara yesterday in response to Senator Roderick Wong Siew Lead regarding the number of traders who did not register for SST and had been required to make repayment.

For cases identified through audits or investigations, the MOF said tax repayments must be made based on a Demand Notice issued after the audit is concluded.