MALACCA: One year after its implementation, the once “controversial” Goods and Services Tax (GST) is now a success, according to Customs director-general Datuk Seri Khazali Ahmad.
He said the department was making adjustments to further improve the tax system.
“We are taking into account the feedback from traders and consumers to ensure that the GST system is running as planned,” he said after closing the Assistant Superintendents of Customs basic training course at the Customs Academy in Bukit Baru here yesterday.
Present was Customs deputy director-general (Customs and GST) Datuk Subromaniam Tholasy.
Khazali said among the improvements to be implemented was the acceleration of the repayment of the input tax credit to traders.
He said that this could only be done if the traders gave their full cooperation to the department.
“There are businessmen who do not answer phone calls, emails and letters sent to them.
“This delays the repayment of the input tax credit to them,” he said, adding that only between 100 and 200 of such cases were being handled by the department.
Khazali said that public acceptance and understanding of the GST was improving.
He said 408,000 businesses had registered under the GST system with traders showing a high level of compliance in submitting their tax returns to the department.
“Almost 95 per cent of them have submitted their tax return forms as required under the GST Act 2014.
“The percentage is better than some other developed countries that have also implemented GST,” he said, adding that such a scenario showed that businessmen had started to appreciate the GST.
Khazali said the department would engage the remaining five per cent of the traders who failed to submit their tax statements.
“Under the GST Act 2014, the Customs director-general can issue an automatic assessment to traders who fail to submit their statements.
“However we will contact them and discuss with the traders first before taking such action,” he said.