Teething problems on GST to be ironed out between 3-4 months

The Finance Ministry expects the teething problems on the Goods and Services Tax (GST), which came into force on Wednesday, will be ironed out within three to four months' time, said its Deputy Minister, Datuk Ahmad Maslan.

He said the ministry has identified many teething problems in the initial stage of the GST implementation like companies not issuing proper receipts for customers and problems on the GST software package.

"We expect GST be stabilised within three to four months though in reality it will take seven to eight months," he told reporters after making a working visit to Tesco Exra hypermarket to monitor the implementation of GST here Wednesday.

Also present was Tesco Stores (M) Sdn Bhd director of government relations and corporate affairs, Datuk Azlam Shah Alias.

On the complaints received on GST today, Ahmad Maslan said the majority of them involved telecommunication companies (telcos) increasing the price of their prepaid reload coupons to include the GST.

He said this should not have happened as the Customs Department has sent official letters instructing them not to impose GST on their reload coupons almost three months back.

Ahmad Maslan said a RM10 reload coupon would still have the same price as the GST would replace the previous six per cent sales and services tax.

"If the telcos still insist on increasing their prepaid reload coupons, then they should increase the talking time period as well," he said.

On another note, Ahmad said, there would be a joint press conference everyday at 5pm on GST by Customs Department's GST Director Datuk T. Subromaniam and secretary-general of the Domestic Trade, Cooperatives and Consumerism Ministry Datuk Seri Alias Ahmad at the Finance Ministry in Putrajaya.