No 'arm twisting' traders who don't need to register for GST

KUALA LUMPUR: Traders who need not register for the Goods and Services Tax (GST) but are being forced to do so via "arm twisting" methods must report such incidents to the Customs Department.

Deputy Finance Minister Datuk Chua Tee Yong said the ministry viewed this matter seriously as it was up to these business operators if they wanted to voluntarily register to implement the GST.

"It is not compulsory for businesses with an annual turnover of less than RM500,000 to register but they can voluntarily do so.

"Nevertheless, Customs officers have been ordered by the ministry to inform such businesses that come forward that it is not mandatory for them to be GST-compliant," he said during question time at the Dewan Rakyat on Thursday.

Chua said this in reply to Rafizi Ramli (PKR - Pandan), who asked whether the Government would take action to ensure businesses earning below RM500,000 a year would not be pressured or discriminated by other companies or government agencies if they did not register for the GST.

Rafizi had claimed that there were campaigns in the media saying that companies which did not register would be discriminated by other companies.

"Otherwise (if they do not register for GST), they will not be given contracts by government departments," he claimed.

As of Nov 5, a total of 125,216 companies have registered to impose the GST, to kick off in April next year.

Companies earning an annual turnover of RM500,000 and above are required to register with the Customs Department to implement the 6% tax before the end of the year.