PAC to meet Najib, LGE and Irwan Serigar over RM19bil GST issue

  • Nation
  • Wednesday, 26 Sep 2018

Public Accounts Committee chairman Datuk Seri Dr Ronald Kiandee. -Bernama filepic

PETALING JAYA: The Public Accounts Committee (PAC) will meet former prime minister Datuk Seri Najib Tun Razak on Oct 17 to get his explanation on the RM19.4bil input tax credit under the Goods and Services Tax (GST).

The PAC would also be calling up current Finance Minister Lim Guan Eng on Oct 22 for his views on the matter, said committee chairman Datuk Seri Dr Ronald Kiandee.

"The PAC has also decided unanimously to ask former treasurer-general Tan Sri Irwan Serigar Abdullah to appear on Oct 16, although he has attended previous proceedings on Sept 13.

"The committee hopes to come up with a conclusion and provide suggestions to the government on the issue when a PAC report on the matter is tabled in the Dewan Rakyat after all three have provided their explanation," said Dr Kiandee in a statement on Wednesday (Sept 26).

In August, the Dewan Rakyat was told that the previous government was not able to refund companies their tax credit following the implementation of the GST because 93% of the money was not placed in the correct account.

Lim said that some RM18bil of the RM19.4bil input tax credit under the GST had been "robbed" by the previous administration.

He said as of May 31, the outstanding GST refund sum stood at RM19.39bil but there was only RM1.486bil in the repayment fund.

Lim said from the total input tax credit, RM9.2bil or 47% was recorded between Jan 1 and May 31 this year, RM6.8bil or 35% in 2017, RM2.8bil (15%) in 2016, and RM600mil (3%) in 2015 (from April 1 to Dec 31, 2015).

Under the GST, the input tax credit allowed businesses to reclaim credit for taxes paid on purchases after they have filed input tax documents.

Dr Kiandee said two former second finance ministers had given their statements to the PAC on Sept 12 and Sept 13.

They were Datuk Seri Ahmad Husni Hanadzlah, who served from March 2008 till June 2016, and Datuk Seri Johari Abdul Ghani, who held the post from June 2016 till April 2018.

In another matter, Dr Kiandee said the PAC had agreed to reopen proceedings on companies owned by the Finance Ministry in relation to 1Malaysia Development Bhd (1MDB), in line with a motion on Aug 16 in the Dewan Rakyat.

He said proceedings on the matter would start soon.

On Aug 16, the Finance Ministry tabled a motion calling for the Auditor-General and the PAC to reopen a probe into the 1MDB scandal.

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