Businesses should trust the government on the Sales and Services Tax (SST) implementation and they should not attempt to evade the tax, said Finance Minister Lim Guan Eng.
He said if businesses felt that they qualify for SST exemption, they must first apply to the Royal Malaysian Customs Department to determine their status.
“For example, there are businesses who provide services and they are unsure if they are subject to SST. So, let’s trust them and allow them to apply for exemption.
“After that, we will review their applications and if we find that they do not qualify for the exemption, then they will have to pay (SST),” he told reporters after attending a briefing on the SST in Subang Jaya on Saturday.
The briefing was organised by the Customs and attended by more than 500 people comprising business people, entrepreneurs and members of trade and business associations.
The finance minister said this is a friendly approach practised by the government to encourage traders to register their businesses for the tax, which would be enforced on Sept 1, 2018.
“So, let us trust first and determine the details later because the government is built on trust with the people,” he said.
Meanwhile, Customs DG Datuk Seri Subromaniam Tholasy said 77,451 businesses had registered under the SST system as at last Thursday, Aug 16, via automated transfer from the Goods and Services Tax system.
“We estimate around 10,000 businesses have yet to register,” Subromaniam said. — Bernama