Producer of goods concerned that costs will increase

  • Nation
  • Thursday, 19 Jul 2018

PETALING JAYA: The Federation of Malaysian Manufacturers says if the range of taxable products is broadened under the Sales and Service Tax, the cost to manufacturers and importers will increase.

FMM president Datuk Soh Thian Lai said the federation would bring up the matter when it meets the Royal Malaysian Customs today.

“The scope and range of products to be covered under this newly-reintroduced SST could be enlarged compared to previous SST era, which was in place until the end of March 2015.

“And this could increase cost burden especially to the selling price of the manufacturers and importers,” said Soh.

He said that FMM was also concerned about the threshold for SST, as the earlier one was at RM100,000 per year.

This, Soh said, was too low. “The Government needs to increase the threshold to a higher figure so that small companies can be relieved from SST registration.”

FMM also wanted to discuss automatic tax reliefs, he said.

“Grant automatic relief for all inputs of raw materials used by licensed manufacturer as this will help to address double taxation and automatic relief of tax for any taxable services rendered to manufacturers,” he added.

Soh said that FMM also wanted the department to address loopholes in tax collection, including tax avoidance, so that there is no grey economy in the country.

“Ensure all outstanding special sales tax and input tax credits are refunded and there is no offset of GST credit for future SST payments,” he added.

He said that FMM was also concerned about excessive profiteering by traders once the SST had been revived.

“This requires strong enforcement by using the Anti-Profiteering Act so that the benefit of lower cost can be passed down to consumers.”

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Government , SST , FMM , Customs


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