Hiccups seen after Malaysia implements GST system

Kuala Lumpur

WITH only a week to go before the implementation of a 6 per cent goods & services tax (GST), Malaysians are bracing themselves for the new consumption charge: individuals for the inevitable pinch in higher prices, and businesses for the anticipated chaos because many issues lack clarity. While business prepping has been made tougher by a penchant for procrastination, tax experts expect there will be a number of hiccups because Malaysia's GST system is rather complex and that it might take a year or so before taxpayers become accustomed to it.

Compared to other jurisdictions where GST consists of standard-rated and zero-rated supplies, Malaysia has added an additional tax-exempt category - where taxed inputs cannot be claimed although the supply is made without GST. Adding to the complication is the wide-ranging list of…