Government to refund GST input tax credit next year

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Finance Minister Lim Guan Eng spoke to the media after the Dewan Rakyat sitting at the Parliament.
Finance Minister Lim Guan Eng spoke to the media after the Dewan Rakyat sitting at the Parliament.PIX: AFIQ RAZALI / MalaysiaGazette / 8 AUGUST 2018.

KUALA LUMPUR – Finance Minister Lim Guan Eng said the Pakatan Harapan government will seek to refund the input tax credit under the Goods and Services Tax (GST) starting next year.

He revealed that the GST input tax credit refunds since its implementation in April 2015 until May 31 this year, totalled RM19.4 billion.

He said according to records of the Royal Malaysian Customs Department the refunds amounted to RM9.2 billion or 47 per cent this year; RM6.8 billion (35 percent) in 2017; RM2.8 billion (15 percent) in 2016 and RM600 million (3 percent) in 2015.

“There is only around RM1.49 billion left in the Trust Fund. This indicates there is a shortfall of about RM18 billion,” he said when tabling the Goods and Services Tax (Repeal) Bill 2018 for the second reading in Dewan Rakyat, today.

Lim said the government would study ways to obtain sufficient funds for the purpose of paying out the GST refund claims.

He said delays in payment of the refunds would affect the business environment and create a negative impact on the country’s competitiveness. -Bernama

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