REPAYMENTS to business owners and individuals who are owed RM19.4 billion in goods and services tax refunds will begin next year, said Finance Minister Lim Guan Eng.

The ministry said last month that 121,429 companies and individuals had not received their GST refunds, some from as far back as 2015.

The ministry affirmed last month that payments would begin in the next financial year.

Lim said he was asked whether the government should be sued during a nationwide tour meeting business owners for their feedback on the sales and service tax.

“They all asked (about GST refunds), even when I said to not ask because the issue was not from our time, but was from the previous government.

“We’ll start paying them back next year. But many people still ask. They just want to let us know that they’ve been owed money since 2015, 2016.

“And they asked me whether they could sue the government. I cannot tell you whether you can or cannot sue. You’ve got to ask your lawyer, and it’s your right.

“But I wonder why, from 2016 until May 9 this year, didn’t they want to sue the government. Why is it only now that you want to sue the government?,” he said to reporters at a sales and services tax briefing in Putrajaya.

As part of his nationwide tour on SST feedback, Lim had visited Penang, Ipoh, Malacca and Johor Baru.

He was in Sabah last night and will hold a meeting in Seremban tonight.

Lim said that the new government’s “friendlier” approach might make it a target for lawsuits.

“Is it because the government is friendly and approachable that you think you can sue? Last time, the government was very fierce. They would come at you.

“But now, the government is more approachable. Everything is more rational and can be discussed. Now they want to sue.

“I tell them not to do that. We don’t want to be fierce. They understand. They are willing to wait until next year. You’ve waited three years, don’t tell me you can’t wait three more months.”

Lim maintained that the SST was more targeted and business-friendly.

“This is more proactive compared with the GST. There was no engagement. They didn’t take anything into consideration. They just hentam (slapped it on).

“That’s why until now, there are people asking for GST refunds. In the long run, you don’t have to ask for (SST) refunds.”

Since August 16, 79,966 businesses have been registered with the Customs Department for the SST regime.

Of the total, 32,577 businesses have registered for the sales tax regime, and 44,874 businesses for the service tax.

Under SST, 5,612 goods will have a sales tax of 10%, while another 793 goods, 5%.

SST involves 38% of the consumer price index basket of goods and services, compared with GST’s 60%.

Putrajaya hopes to collect up to RM22 billion from SST this year, compared with the full-year revenue of RM44 billion for last year when GST was in place. – September 3, 2018.