Irwan: Gov't needs prioritised over legitimate GST refund claims

PAC REPORT | The previous administration did not entertain legitimate GST refund claims when it could not afford to do so, said former Treasury secretary-general Mohd Irwan Serigar Abdullah.

According to the Public Accounts Committee report tabled today, Irwan said the Finance Ministry prioritised the government's operating expenditure.

"(Irwan explained that) if there was excess, then a decision would be made to pay those seeking refunds, even if the claims by the taxpayer were complete and complied with all procedures," read the report.

Current Treasury secretary-general Ahmad Badri Mohd Zahir said that had the Finance Ministry allowed the GST refunds to be made at the time, it would have worsened the budget deficit and affected the country's credit rating.

Badri was Irwan's deputy prior to May 2018.

The report also cited the Customs Department as saying that the GST Trust Fund, as of May 31, 2018, only contained RM152 million.

"This amount was not enough to repay RM19.4 billion in GST refund claims," he said.

Although concluding that "no money was missing", the PAC said that this GST Trust Fund was insufficient because the money was used for other purposes.

The committee also concluded that the previous administration violated Section 54 of the Goods and Services Act 2014 for paying GST monies into the consolidated revenue account. - Mkini