KUALA LUMPUR: A survey by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) shows that 40 per cent of small and medium enterprises (SMEs) are not ready to implement the goods and services tax (GST) system.
It also found that they would need between 12 and 18 months to be prepared for it.
ACCCIM’s National Council and SME deputy chairman Koong Lin Loong said the survey also revealed that a lot of people thought that the system would cause inflation with higher prices of goods and services.
He said this to Bernama during a talk on GST organised by ACCIM here yesterday.
Koong said the SMEs would need to be well prepared as they would need to upgrade their accounting and computer systems as well for the system.
They would also need consultations to ensure the effectiveness for them in the event the system is implemented.
Supporting the implementation of GST, Koong said it was a better system and more comprehensive for consumers and businesses, where tax would be implemented at four per cent, replacing the existing 16 per cent sales and services taxes.
“Via this tax system, we would be charged based on how much we are spending and not based on our earning anymore,” he said.
The GST system originally scheduled for a second reading in the Parliament last month has had it postponed to ensure the government and all parties would be prepared for its implementation.
Meanwhile, touching on the possibility of retailers increasing the prices with the GST, he said that
under the Anti-Profiteering Act 2010, the government would ensure they would not raise their prices excessively.
“In fact, GST would not be costing the businesses, retailers would act as the tax collectors on the behalf of the government as the consumers need to pay tax every time they spend,” he said.
“Under the system, the government also can prevent leakages on its earnings in the tax system.
“For example, currently certain restaurants pay their sales and services taxes but some do not.” Koong also said that among the
Asian countries, only Malaysia, Myanmar and Brunei have not implemented the system.
He added that the GST system was good for a nation’s growth as it was broad based and more fair to all parties.— Bernama