KUALA LUMPUR: Finance Minister Lim Guan Eng has given his assurance that the government will honour outstanding Goods and Services Tax refund payments to companies.
He said the government is committed to paying the refunds despite RM19.4 billion missing from the government’s consolidated fund.
Speaking during the question-and-answer session in the Dewan Rakyat here on Thursday, Lim was asked on issues concerning the Sales and Services Tax (SST).
Earlier, Datuk Takiyuddin Hassan (Pas - Kota Baru) asked the Ministry of Finance on how many companies have been registered under the Sales and Services Tax (SST) as of September 2018 and what action will be taken against those who fail to register and avoid paying tax.
In a follow-up question, Takiyuddin also asked on the GST, to which Lim replied that he was only prepared for SST-related questions but would try to answer based on his knowledge.
Lim said as of October 2018, 92,682 businesses have been registered under the SST.
Of these, 57,298 were registered under the Service Tax while 35,384 were registered under the Sales Tax.
Lim said traders who fail to register under the SST are committing a crime and can be punished with a fine not exceeding RM30,000, or imprisonment for a term not exceeding two years, or both.
“As for traders who refuse to pay taxes, they can be subjected to a compound amount not exceeding 50 per cent of the amount of the maximum fine, if found guilty.”
Lim said this is based on Section 95of the Tax Act Sales 2018 and Section 80 of the Services Tax Act 2018.