PRIME Minister Datuk Seri Najib Tun Razak said the Goods and Services Tax (GST) at six per cent, to be implemented on April 1, 2015, is estimated to rake in RM23.2 billion in government revenue.
However, we have exempted several goods from GST amounting to RM3.8 billion.
“With the implementation of GST, the Sales and Services Tax will be abolished resulting in revenue foregone of RM13.8 billion.
“This means that after deducting RM13.8 billion and RM3.8 billion from a revenue of RM23.2 billion, the government will have a balance of RM5.6 billion,” he said in a written reply to Teresa Kok Suh Sim (DAP-Seputeh) at the Dewan Rakyat yesterday.
Najib, who is also finance minister, said the implementation of the GST would cost RM137 million.
He said companies with a taxable turnover of over RM500,000 but are not GST registered can be fined or the owner can be jailed for not more than two years or both.
“For small companies with a taxable income of less than RM500,000, it is not mandatory for them to register as such the issue of imposing GST does not arise,” he added. — Bernama