Finance Minister Lim Guan Eng said the overhang currently stands at RM19.5bil.
GEORGE TOWN: Malaysia’s inflation rate is projected to be around 1.6% this year, although the rate may go up to 2.0% because of the global uncertainties, says Finance Minister Lim Guan Eng.
He said the inflation rate might go up to 2.0%, but if the global uncertainties could resolved, the rate would be much lower.
“But even at the maximum rate of 2.0%, it would still very low because all this depend on the global uncertainties.
“This is because if suddenly Donald Trump settles the trade war with China, then you will see the stock market and everything flying,” Lim said during a press conference at Penang Chinese Chamber of Commerce (PCCC) on Light Street.
“But if the trade war escalates, then it would be a different story,” he added.
However, Lim said they expects things to be better domestically with the current trends.
He said in terms of numbers and exports last year, the amount had almost reached RM1tril and was expected to be more than RM1tril this year.
“The inflation rate recorded in 2018 was only at 1%, the lowest in nine years.
“This shows how big the impact of the GST was, as the inflation rate was 3.7% in 2017,” Lim said, adding that the rate was reduced to 1%, even though the abolishment of the Goods and Services Tax was only in June.
“Yes, there is a price increase in items under the new SST, but it was not as bad as the GST,” Lim said.
During the press conference, Lim also said taxpayers who had paid their taxes need not worry about the email alerts from the Inland Revenue Board (LHDN) urging them to pay their taxes.
“Taxpayers who have settled your funds do not need to worry, as LHDN sent the emails to everyone,” he said.
Lim, however, urged those who had not paid their taxes to take the initiative and pay them as they would only face a 10% penalty if they settled by March and a 15% penalty by June.
“After that the penalty may go up to 300%, after June 30,” he said.
“For taxpayers who have paid their taxes and are facing issues, they can forward their complaints to the Ministry of Finance (MoF), and MoF will review the complaints,” he added.
Lim said taxpayers could call or forward their complaints to Muhammad Sadiq Noor Azlan at 011-1217 0764 or Datuk Ooi Kok Seng at 012-486 8838.
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