PAC: Najib may be recalled over RM19.4bil input tax credit

More questions: Najib after meeting PAC members at Parliament.

KUALA LUMPUR: Public Accounts Committee chairman Datuk Seri Dr Ronald Kiandee says former prime minister Datuk Seri Najib Tun Razak may be recalled over the RM19.4bil input tax credit under the Goods and Services Tax (GST).

He told reporters after chairing the meeting in Parliament that at this point, PAC could not determine whether he would be recalled.

“But we will refer back on whether there is a necessity to do so and if need be, we will call him back,” said Kiandee.

Former Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah and Customs Department director-general Datuk Seri T. Subromaniam testified before the PAC.

Kiandee said that he could not reveal the full details of Najib’s testimony but the latter had explained the government’s cash flow, GST collection, GST refunds and other key questions which were needed by PAC members.

“However, all of the questions revolved around the term of reference set by the PAC,” added Kiandee.

He also noted that Finance Minister Lim Guan Eng would only be called up after the tabling of the Budget on Nov 2.

“Initially, we set Oct 30 but this will be postponed due to the tabling of the Budget.

“We will adjust the date and announce it later,” he said.

In August, the Dewan Rakyat was told that the previous government had not been able to refund companies their tax credit which came with the implementation of the GST because 93% of the money was not credited into the correct account.

Lim alleged that some RM18bil of the RM19.4bil input tax credit under the GST was robbed by the previous administration.

He said as at May 31, the outstanding GST refund stood at RM19.39bil, whereas there was only a balance of 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, subject to filing of input tax documents.