Labuan wants grace period on tax penalty
Published on: Wednesday, March 06, 2024
By: Sohan Das
Dahlif said the SST and LGS were ill-timed as many are already struggling with the recent hike in water and electricity tariffs.
LABUAN: Indian Chamber of Commerce and Industry Chairman Datuk Dahlif Singh suggested that the Ministry of Finance (MoF) provide a grace period of about three months on complying with the new SST and LST as many in the business sectors are not familiar with the details and need time to adjust.
He cited the new category of Logistic Service Tax (LGS) where medium enterprises and others not having qualified accountants may not understand and innocently infringe the new requirements.
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“Their plight needs to be sympathised,” he said.
The SST and LST at 8pc and 6pc, respectively, was implemented by Customs from March 1 with the threshold of the total amount taxable service set at RM500,000, and all are required to register.
The penalty for late payment is 10pc for the first period of 30 days, 15pc for the second period, 30pc for the third to a maximum of 40pc for the unpaid service tax.
“The grace period will also provide an opportunity for the MoF to assess whether the wide range of SST is counter-productive by way of reduced consumer spending and its impact on those in the lower socio-economy,” he added.
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Dahlif said the SST and LGS were ill-timed as many are already struggling with the recent hike in water and electricity tariffs.
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“The Government should opt for other methods to find funds such as being austere in spending and not keep squeezing the public,” he added.
