Netizen 24 MYS: 4 Things Consumers Should Know As GST Gets Zero-Rated Beginning 1 June

By On May 29, 2018

4 Things Consumers Should Know As GST Gets Zero-Rated Beginning 1 June

4 Things Consumers Should Know As GST Gets Zero-Rated Beginning 1 June

Published by Tang Ruxyn â€" 30 May 2018, 02:04 PM

The Goods and Services Tax (GST) will be eventually abolished while the Sales and Services Tax (SST) will be reintroduced.

  • The Goods and Services Tax (GST) in Malaysia will be set to zero percent (0%) effective 1 June 2018

      • 465d
    • All supplies of local and imported goods and servic es which are now subject to GST at the standard rate of 6% will be subject to GST at zero rate (0%) beginning 1 June 2018.
      Previously, only certain goods and services are treated as zero-rated, exempt, or are subject to relief. The Royal Malaysian Customs Department (JKDM) said in a FAQ (frequently asked question) sheet that "an exempt supply goods or services is remain exempt and it does not change to standard-rated 0%."
      The move to zero-rate GST is part of the new government's initiative to fulfil Pakatan Harapan's manifesto which promises to abolish GST within 100 days.
      The Finance Ministry confirmed previously that the Sales and Services Tax (SST) will be reintroduced to replace GST.

  • Here are some things to note about the upcoming zero-rating of the GST on 1 June:

  • 1. Consumers will enjoy a 'tax holiday' window during the transition period

    • Prime Minister Tun Dr Mahathir Mohamad revealed today that SST will only be introduced in September.
      Consumers are given the opportunity to buy goods at a lower prices during the transition period as GST gets zero-rated while SST will only kick in at a later date.
      According to report by The Star, analysts are expecting car sales to jump in the next two or three months in view of the 'tax holiday' even as many companies have already revised their pricing for their vehicles, offering rebates and discounts before GST is officially zero-rated.

  • 2. Consumers have been advised to check their receipts for each payment made to ensure that no 6% GST is charged

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    • Bernama reported Domestic Trade, Con­su­merism and Cooperatives Affair Ministry's (KPDNKK) enforcement director Datuk Mohd Roslan Mahayudin as saying in a press conference on Monday that price tags of goods on display racks and receipts may differ as traders needed more time to change the price tags accordingly.
      However, he stressed that the 6% GST must be deducted at the cash register and reflected in the receipt during this grace period.
      "On 1 June, the price tags may still show RM100, we allow that, but the consumer must make sure that on the receipt, the price is RM94. Consumers must be alert and ensure that the receipt shows that the GST is 0%, not the standard-rated 6% any more," Mohd Roslan was quoted as saying.

  • 3. Consumers can also play their part in ensuring that traders comply with the new rules

    • If there are irresponsible businesses who exploit the zero-rating of GST or increase prices as they like, consumers can file a complaint to KPDNKK through the various channels available:
      1. Contact the 1Malaysia One Call Centre (1MOCC) by calling +603-80008000
      2. Contact the toll-free Information and Strategic Operations Movement Centre (PIGOS) line by calling +603-88826088/6245
      3. Use the smartphone application, 'Ez ADU'
      4. Send an email to aduan@kpdnkk.gov.my

  • 4. The authorities will also be monitoring businesses to ensure GST is not charged to consumers

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    • The Star reported Economic Affairs Minister Datuk Seri Azmin Ali as saying that KPDNKK, the Agriculture and Agro-Based Industry Ministry, and the Royal Malaysian Customs Department, are among some of the major enforcement ministries and agencies that will be mobilised to monitor the price of goods.
      Traders have been warned that action can be taken against them under the Enforcement of Price Control and Anti-Profiteering Act 1999 and the Trade Descriptions Act 2011 if they do not comply with the zero-rated GST ruling.

  • Some retailers have started offering the GST-free rate ahead of 1 June:

    • 12 Businesses That Are Already Offering 6% Discount Before GST Becomes Zero-Rated

      Good deals coming your way!

      says.com

  • Meanwhile, Malaysia's central bank is expecting prices of goods and services to decrease after GST reduction:

    • Bank Negara: Prices Of Goods And Services Are Expected To Fall After GST Reduction

      The BNM governor wants the public and businesses to benefit from the amendment.

      says.com

× 7ba7c1adf672832a3ef9426d50f5580a small thumb Tang Ruxyn View all stories Ruxyn spends too much time guessing a stranger's personality based on the MBTI. A hoarder who enjoys crime and thriller movies. More stories to readSource: Google News

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