UMNO IN JEOPARDY – MALAY TIDE TURNS AGAINST NAJIB: NOW EVEN MALAY CHAMBER SAY ‘GST HAS CAUSED MANY MALAY BUSINESSES TO CLOSE SHOP’

THE goods and services tax has caused many businesses to close, said the Malay Chamber of Commerce Malaysia today.

However, its vice-president, Norsyahrin Hamidon, said the chamber had yet to obtain the exact number of members who had to close shop due to GST.

“There are members who are affected by GST. Not just affected, but some have closed their businesses,” said Norsyahrin at a press conference at the chamber’s headquarters in Kuala Lumpur today.

“Our research centre and the Malay Economic Action Council are doing an analysis of (the impact of) GST on entrepreneurs in Malaysia, especially Malay entrepreneurs, who are our members.”

According to the first series of the Auditor General’s Report 2016, GST revenue from local goods showed an increase of 85%, from RM14 billion in 2015 to RM25.97 billion last year.

GST on imported goods, meanwhile, rose 17% from RM12.9 billion to RM15.2 billion.

Nonetheless, Norsyahrin said, GST was introduced at the right time and could help Putrajaya cope with revenue loss during times of economic uncertainty.

“As we know, GST came at a time when our economy was not good and the government’s revenue from Petronas had lessened. GST made up for that shortfall  ,” he said, adding that GST was used worldwide with the exception of a few countries.

In view of the upcoming Budget 2018, which will be tabled in Parliament next Friday, the chamber said Putrajaya could ease the burden on the people by restructuring the tax revenue penalty that businesses nationwide faced.

Norsyahrin said businesses could not “avoid” agencies such as the Companies Commission Malaysia, Customs Department and Inland Revenue Board (IRB).

“Each year, we have to estimate our taxes a year ahead and we are asked to pay in instalments.

“That is where the problem for entrepreneurs lies, because if by the end of the year, our estimates are very different, which is more than 30%, we will be subjected to a 10% penalty.”

The chamber urged the IRB to drop from its blacklist those who come forward voluntarily to pay taxes.

“They could have not paid taxes for the past five or 10 years. But they realise (that it is wrong) now, and the penalties are weighing them down.

“They want to pay their taxes, but are afraid of the high penalties. We suggest that those who come forward are taken off the blacklist.”  

He said this would also increase the country’s revenue and keep IRB’s data up to date.

“It could help entrepreneurs, as we know that if you don’t pay your taxes, you will not be able to get loans from the banks.”

Norsyahrin urged Putrajaya to assist entrepreneurs, or direct funds to the chamber for those involved in the Digital Free Trade Zone.

“The chamber can assist in big data and the Digital Free Trade Zone because all businesses have gone digital.

“We cannot run from it, and Malay entrepreneurs must not be left behind.”

He said the chamber had 15 offices nationwide and would carry out vetting to ensure that funds, especially for the digital economy, were channelled to Malay entrepreneurs.

“We hope that Budget 2018 can ease the burden of Malay entrepreneurs.”

– https://www.themalaysianinsight.com