50,000 firms yet to register for GST, says Ahmad Maslan

About 50,000 errant companies have yet to register for the Goods and Services Tax (GST) based on the Inland Revenue Board's database, said Deputy Finance Minister Datuk Ahmad Maslan.

He said the government would force companies to register, with a minimum RM2,000 compound for companies missing the Dec 31, 2014 compulsory registration deadline.

"If you do not want to register, we will register for you and a maximum of RM15,000 will be compounded.

"The Inland Revenue Board has the names of the companies and other information," he said.

Speaking on BernamaTV's "Ruang Bicara" programme entitled 'Protecting the National Economy' here last night, Ahmad said the overall response to the GST has been 'amazing.'

While the government initially expected only 150,000 companies to register for the GST, the number has increased to more than 305,000 companies, he said.

Malaysia will implement the GST from April 1 at the rate of six percent as a replacement for the current Sales and Service Tax.

Meanwhile, Ahmad said the government is ready to make a revision to the 2015 Budget including deferring the implementation of high-impact mega projects if global oil prices continue to plunge.

However, he said, based on the ministry's and agencies' findings, oil prices are not likely to dip below US$40 per barrel, as oil production cannot be lower than the cost.

"The government and most economists expect oil prices to hover around US$40-US$70 per barrel, and we choose US$55 per barrel as the average oil price for the year," he said.

Ahmad said all current mega projects such as the Pan Borneo Highway, the MRT Line 2, LRT3 and Kuala Lumpur-Singapore High Speed Rail will continue.

He said the Pan Borneo Highway, which will catalyse Sabah and Sarawak's development, should not be delayed again because it can change the economic landscape along the highways.

"Similarly, the MRT and high-speed train projects will be catalysts for economic growth. Creating a high-speed rail will involve hundreds of economic activities involving various industries including manufacturing and services," he explained. - Mohd Iswandi Kasan Anuar