PETALING JAYA: The Customs Department had requested for RM19.4bil for the Goods and Services Tax (GST) refunds over a period of three years but it was not approved during the monthly trust fund meetings, said its director-general Datuk Seri T. Subromaniam.
He said the required amount for the refunds for the period of April 1, 2015 until May 31, 2018 was RM82.9bil but only RM63.5bil was transferred to the trust fund throughout the period.
“The Customs Department has requested for RM82.9bil from the monthly meetings but the amount was not transferred in full.
“We have reported during the monthly meetings chaired by the Treasury secretary-general about the amount filed into our GST system by taxpayers through the GST-03 form for refunds,” he said in a statement Friday.
Subromaniam added that the trust fund was set up for the purpose of GST refunds under Section 54 of the GST Act 2014.
He said all GST payments go into the Federal Government’s consolidated funds account which will then be transferred to the trust fund for GST refunds.
“As of May 31, the trust fund is facing difficulties paying the arrears of GST refunds totalling RM19.4bil,” Subromaniam said.
His statement comes after Finance Minister Lim Guan Eng said that RM18bil of RM19.4bil in GST refunds were missing under the previous Barisan Nasional government.