Exactly one year after the introduction of the Goods and Services Tax (GST) in Malaysia, the government won backhanded praises for its continuous efforts in ensuring a smooth sailing of its implementation.
Below are five key facts on GST, a year later.
1) Reduction of customer complaints
The good news is, voices of dissents and displeasure pertaining GST have reduced tremendously, one year after its implementation.
According to Director of Hernancres Tax Consultancy Sdn Bhd, Desmond Anil, the decline is testimony of a higher understanding of the GST model among the people and businesses in the country.
"The people have began accepting the GST model very well and understanding it well.
"Consumers and businesses have taken the time to understand this model. The customs have also done a good implementation plan," said Desmond.
2). Three years forecast of a smooth sailing GST
According to Desmond, the implementation of GST in Malaysia is still at its infancy and the road to success is yet a bumpy one.
He predicted that the GST will be smooth in three years time.
Seventeen months before the implementation of GST in 2015, the Customs Department carried out various programmes to increase awareness and understanding among Malaysians.
The Customs Department and businesses, he added should join effort to reduce communication gaps in order to further understand the weaknesses and strength of GST.
Moving forward, this would improve the implementation for people to become accustomed to it.
3) 400,000 companies registered for GST in 2015
There are about 400,000 companies registered for GST as of end 2015.
Desmond said these numbers seem to not increase due to the lack of awareness on the benefits by Malaysian companies.
"Most of them are afraid of compliance work," Desmond Said.
He also added that the main benefit to companies and consumers include the need of registered companies to remain transparent.
4). Consumers remain cautious
It can't be denied that these days consumers continue to be cautious of their expenditures.
Bank Islam's Head Economist, Mohd Afzanizam Abdul Rashid said sentiments among consumers are predicted to linger.
He added that the inflation rate in February 2016 stood high at 4.2 per cent.
"If you look at the Consumer Sentiment Index (CSI) by MIER on the fourth quarter, it shows a decrease of 63.4 points.
"CSI is at its all-time low and from there, we can predict that consumers' sentiments are very weak at the moment," Afzanizam said.
5). GST target in 2016
The government is targeting at collecting of RM39 billion in GST, this year. Last year, In December, 2015 the Customs Department reported it had collected over RM30 billion from 400,000 companies since GST was introduced on April 1.
Observers and economists optimistically are singing the same tune. They concluded that the GST implementation has significantly helped the government earn its revenue that would have been affected from the drop in commodity prices.
Pritha Manivannan
Fri Apr 01 2016
Many praise the continuous efforts by the Customs Department to ensure a smooth sailing GST - Photo by Astro AWANI/generic
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