KUALA LUMPUR: The government lost RM10 billion in tax revenue as a result of exempting the Goods and Services Tax on several goods since its implementation on April 1, 2015, said Deputy Finance Minister Datuk Chua Tee Yong.
He said this was a result of GST being exempted or zero GST on goods and services like basic food, education, health and public transportation.
“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 today.
Chua said between April 1, 2015 and January 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 per cent 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 todate, RM10 billion were paid out in refunds to traders. --Bernama