GST exemptions cost govt RM10b in revenue

Posted on 16 March 2016
 

Source: BERNAMA
The government lost RM10 billion in tax revenue as a result of exempting selected goods from the Goods and Services Tax (GST) since its implementation on April 1, 2015, said Deputy Finance Minister Datuk Chua Tee Yong.

This is a result of GST exemption or zero GST on goods and services such as basic food, education, health and transport.

"There were suggestions to increase the number of products excluded and zero-rated items this year to include fruits, medicine and petroleum," he said in a supplementary question to Khoo Soo Seang (BN-Tebrau), in the Dewan Rakyat here yesterday.

Chua said between April 1, 2015 and Jan 31, 2016, a total of 1,190 GST-related cases were investigated by the Royal Customs Department under the Goods and Services Tax Act.

"Of the total, 16 cases were prosecuted in the sessions court involving fines of RM125,000," he said.

Chua said the GST was estimated to contribute 18% to government coffers this year.

"We must understand that revenue derived from GST collection cannot offset the shortfall from oil revenue.

"In 2014, the government derived a revenue of RM66 billion from petroleum and dividends from Petronas," he added.

"We estimate revenue from crude oil to decline between RM25 billion and RM31 billion this year," he added.

To a question from Datuk Seri Mohamed Azmin Ali (PKR-Gombak), Chua said to date, RM10 billion has been paid out in refunds to traders.


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