THE failure of the previous Barisan Nasional government in refunding the Goods and Services Tax (GST) Input Tax within 14 days from the date of the filing of claim is not only a breach of GST laws, but also a serious breach of trust. It is totally disrespects the spirit of the legislation, which guarantees the implementation of GST will not adversely affect or place so heavy a financial burden on taxpayers.

The Public Accounts Committee (PAC) report on the GST Refund was tabled in Parliament this morning. There is a pertinent point to note – the failure of the previous BN government to refund the GST Input Tax within 14 days as stipulated by GST laws and regulations. There is a huge number of outstanding GST Refund claims that have not only exceeded the 14-day stipulated period, but are between 181 days to even more than 731 days late. 

Although it is public knowledge that the tax-paying businessman shares the common plight of not getting the GST Input Tax Refund from the previous administration, the figures above are indeed shocking. The delay in the refund had largely contributed to the rise in cost of goods, as the indefinite delay has caused the GST Input Tax pushed into the cost of operation.

The GST Act and the relevant regulations were drafted after taking into consideration the view of stakeholders. One of the promises given to the business entities was the guarantee of their refunds. In return, the interest of the government was protected by imposing heavy criminal liability on fraudulent claims (Section 89 and 90 of the GST Act 2014), and the provisions to enable the government to conduct audits on claims within six years from the date of the payment of the refund.

The previous BN administration violated the law and allowed the refund of the GST Input Tax to be delayed indefinitely. It is a serious criminal offence and people have been tormented by skyrocketing price of goods because of their deed.

As stated by the attorney-general in the PAC report, the clear breach of law requires police to initiate a criminal investigation. I hereby concur with the learned A-G and urge the relevant authorities to take immediate stern action against those responsible for this unforgivable crime. – July 15, 2019.

* Chang Lih Kang is Tanjong Malim MP.