Customs optimistic 2019 SST collection will top RM22b target

: The Royal Malaysian Customs Department is optimistic that this year’s sales and service tax (SST) collection will surpass the RM22 billion target.

Customs Director-General Datuk Seri Subromaniam Tholasy said this was based on the expansion of services subjected to SST to include amusement park operations, securities, brokerage and underwriting, commercial and industrial building cleaners, as well as training and coaching.

“We can easily surpass this target and collect slightly more than RM22 billion,” he told reporters at the “Sales Tax and Service Tax – Latest Updates and Ongoing Goods and Services Tax (GST) Issues” seminar here today.

Subromaniam said the expansion of services subjected to the SST, beginning March 1, was expected to garner at least 10,000 new registrations.

“Unregistered night clubs, dance hall, cabarets, health and wellness centres, massage parlours, public houses and beer houses will also be subjected to the SST. This is to be fair to registered businesses that pay SST,” he said.

Meanwhile, Subromaniam said the exclusion of big-ticket marine vessels such as cruise ships, excursion boats, ferries and cargo ships was because these were considered to be investments.

Other big-ticket items excluded from the tax were barges, and goods transportation vessels, fishing vessels, ships and other vessels used for processing or preserving fish products.

He said from a tax policy perspective, investment items should not be taxed as it would not benefit businesses in the country.

“If we tax investment items, people can always buy from other countries such as and Hong Kong, where there are no taxes on these items and yet, these ships can be used in . This will not benefit anyone,” he said.

Subromaniam added that taxing big-ticket items considered to be investment items would also be detrimental to the local business as it would cause them to lose customers.

Source: The Sun Daily

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