KUCHING: To ensure smooth transition for businesses, especially small-medium enterprises (SMEs), the government had introduced several incentives prior to this year’s GST-implementation.
According to Assistant Minister for Industrial Development Datuk Julaihi Narawi during today’s state legislative assembly sitting, the government had allocated RM250 million to ensure that smooth transition, with RM100 million allocated to conduct awareness and training programmes nationwide through various agencies.
“From January 2013 up to March 31st 2015, Customs Department Sarawak had conducted 186 awareness programmes and seminars with a total number 33,869 participants throughout Sarawak. These programmes were conducted in collaboration with Ministry of Finance Malaysia (MOF), KPDNKK, Jabatan Hal Ehwal Khas Jasa Sarawak Jabatan Penerangan, Higher Institution of Learning, other government agencies as well as Business Chambers and Trade Association,” he said.
Besides the awareness programme, the remaining RM150 million had been allocated for SMEs to purchase or upgrade GST-compliant accounting software through e-Vouchers at RM100 each channeled through SME Corp.
“As of March 2015, a total of 151,623 SMEs has received the e-Voucher and 91,573 e-Vouchers were redeemed nationwide. In Sarawak, as of April 2015, 6,566 SMEs received the e-Vouchers and 4422 were redeemed,” said Julaihi.
Other facilities provided were GST training grants of RM100 million to businesses that sent their employees for GST training in 2014 and 2015, accelerated capital allowance until year of assessment 2015 for cost of purchasing ICT equipment and software, tax deduction on expenses incurred for training in accounting and ICT relating to GST for years of assessment 2014 and 2015, tax deduction for secretarial fees and tax filling fee from 2015 and a reduction of corporate tax for companies from 25% to 24% and for small businesses from 20% to 19%.
“KPDNKK will continue to conduct awareness programmes to ensure traders price tag their goods and services in compliance with Price Control and Anti Profiteering Act 2011,” said Julaihi.
In response to a question posed by Kota Sentosa assemblyman Chong Chieng Jen on what actions the government would take to prevent businesses in Sarawak from being affected by double taxation, Julaihi said that the state government will continue to appeal to the federal government on this issue.
Since February 2015, the GST hand-holding programme conducted for registration under the GST Act 2014 had been carried out by the Custom Department for guidance and assistance in preparing written accounts in showing out GST compliance tax.
“The department has conducted 12 hand-holding programmes throughout Sarawak and has been attended by 1,150 companies and will be continued throughout the year. Besides the call center in Custom Putrajaya, Custom Sarawak has set up a call center in all divisions in Sarawak with operational hours from 8 am till 10 pm including weekend,” he added.
In addition to that, from 2014 to March 2015, 10 seminars on GST with 2,181 participants from business chambers and SMEs had been organised by MID in collaboration with Custom Department has organised throughout Sarawak while 22 GST awareness seminars statewide had been organised by KPDNKK jointly with Custom Department, Ministry of Finance and Information Department since 2014 with 4000 consumers and members of the industries. SME Corp has organised two GST training sessions in Kuching and Miri in 2014, benefiting 500 SMEs.