KUALA LUMPUR – The government does not have any plan to revise the threshold of the Goods and Services Tax (GST) for the time being, said Deputy Finance Minister Datuk Chua Tee Yong.
Commenting on a report that the Federation of Malaysian Manufacturers (FMM) has backed a proposal for the government to increase the threshold to RM1 million from RM500,000, Chua said the amount was ‘within the norm’.
“If you compare regionally, like Thailand and Philippines where their thresholds amounted to about RM14,000 and RM180,000 respectively, and in the developed countries like the UK and US (around RM400,000), our threshold is actually higher than these countries.
“For Malaysia, the RM500,000 threshold is relatively within the norm.
“It is not too high nor too low and (we are not looking at any revision) at this moment,” he told reporters after witnessing the ‘1,600 Pandas World Tour’ cheque presentation ceremony here today.
Chua said the RM500,000 threshold took into account the number of businesses that would be impacted once the GST was implemented from Apr 1.
He said an initial survey showed that only between 12 and 13 per cent of the companies would be required to register for GST as not all businesses hit the turnover of RM500,000 per annum.
FMM chairman, Datuk Saw Choo Boon, had said the RM500,000 threshold was very small for businesses owing to inflation and the rising costs of goods.
Saw also said the process to register and file the GST would be burdensome for small entities or businesses.
On whether there would a reduction in electricity tariff in the second half of this year due to lower crude oil and coal prices, Chua said the government would monitor the situation before making any decision.
“We need to look into the coal and gas prices because the bulk of energy produced by Tenaga Nastional Bhd does not solely use crude oil as it has been using a lot of coal and gas.
“Coal price has dropped slightly and this is something we will definitely be monitoring. If there is further decrease in these kind of raw materials in terms of generation of electricity, definitely this is something to be brought up for discussions,” he said.
The 1,600 paper mache Pandas have gathered at Publika Mall in Sri Hartamas for a two-week grand exhibition after travelling to more than 15 iconic locations in Peninsular Malaysia to promote the importance of environmental conservation and sustainable development.
Those interested can register online for a chance to bring home a paper mache panda at RM150 each where all proceeds will be channeled to WWF-Malaysia’s conservation efforts. – BERNAMA