Kerajaan digesa benarkan bayaran balik cukai GST bagi transaksi antara perniagaan

Malaysia's government is considering introducing a GST refund component for business-to-business transactions under the sales and services tax (SST) system, according to experts. GST, which was introduced in April 2015 at a 6% rate before becoming 0% in June 2018, allows businesses to claim refunds for taxes paid on their operating expenses, thus preventing double taxation known as tax cascading.

Anand Chelliah, CEO of Baker Tilly Malaysia, suggested that businesses should not be taxed twice for the same costs incurred, explaining that this could accumulate when goods and services move from one business to another, with the end consumer paying higher prices. He proposed integrating GST's refund component into the SST, particularly for business-to-business transactions, while also suggesting the government combine elements of GST with the current SST system.

Sunway University economist Yeah Kim Leng emphasized that a refund mechanism is the most useful feature of GST, as it can prevent tax accumulation along the supply chain. By allowing businesses to claim back taxes already paid, consumers would benefit from lower prices and avoid the overall implementation of GST, which could harm smaller businesses.

Prime Minister Anwar Ibrahim reportedly said that the government is open to studying how GST components could be integrated into the SST system, while still maintaining SST as the main tax system, even if GST-based taxation is introduced to create a more progressive tax structure. Under the current SST system, business taxes paid for services used cannot be claimed back, making it part of their operating costs.

However, a lack of GST refunds has resulted in a RM19 billion shortfall since the GST scheme was suspended in 2018. The government has since reimbursed most of this amount, except for around RM30 million as of February 2021. Anwar warned that any changes to the tax system should be introduced gradually, protecting essential goods and services from taxation, and financial assistance and individual tax relief could help households.

Bank Muamalat Malaysia's Chief Economist, Afzanizam Rashid, added that any new tax system should function smoothly and quickly to avoid burdening businesses.