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Bill to repeal GST tabled in Parliament for first reading


KUALA LUMPUR: The Pakatan Harapan Government has taken the first step in its promise to repeal the Goods and Services Tax (GST) with the tabling of five Bills for its first reading.

The Bills are not just to abolish the GST but also to reintroduce the Sales Tax Bill 2018 and the Services Tax Bill 2018.

Deputy Finance Minister Datuk Amiruddin Hamzah tabled the GST (Repeal) Bill 2018, Sales Tax Bill 2018, Service Tax Bill 2018, Customs (Amendment) Bill 2018 and the Free Zones (Amendment) Bill 2018 on Tuesday (July 31).

The proposed Sales Tax Bill seeks to provide for the charging, levying and collecting of sales tax.

The proposed Sales Tax and Service Tax bills are to provide for the implementation of a new tax system, which will replace the Goods and Services Tax Act 2014.

Under both the sales and service taxes, any person who intends to evade or assists someone to do so can be fined not less than 10 times and not more than 20 times the amount of sales tax or imprisoned for not more than five years or to both, if found guilty.

If the offence is committed for the second or subsequently, then the individual is subjected to a fine of not less than 20 times and not more than 40 times the amount of sales tax, or prisoner for not more than seven years or both.

The Customs (Amendment) Bill meanwhile is "principally consequential" to the implementation of the new tax system. The main amendment under this Bill is related to the membership of the Customs Appeal Tribunal and its proceedings.

The Free Zones (Amendment) Bill 2018 is an amendment to the Free Zones Act 1990 to pave way for the implementation of the sales and service taxes.

 

   

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