2012 Will Be Right To Introduce GST, Says ACCCIM
KUALA LUMPUR, July 16 (Bernama): The Associated ChineseChambers of Commerce & Industry of Malaysia (ACCCIM) says 2012 will be theappropriate time for the government to introduce the Goods and Services Tax (GST).
Its Deputy Chairman of SMEs & Head of SMEs SurveyUnit, Koong Lin Loong, said a majority of businesses felt that they should begiven at least 24 months to prepare for the new tax system.
Quoting the ACCCIM 2010 SMEs Survey findings, Koong said33 per cent of the respondents had said that their businesses were not preparedfor the implementation due to a lack of information from the government.
"The government needs to strengthen its efforts inthis regard. It needs to educate the public through various mediums for apositive view on the GST," ACCCIM President Tan Sri William Chengmeanwhile highlighted.
He suggested the government draw up a clear timetable andprovide more details so that the public have sufficient time to understand andprepare accordingly.
By having sufficient preparation, the public, especiallythe businesses will not be caught by surprise or have any resistance andmisunderstanding of the GST, Cheng explained.
The survey also revealed that 80 per cent of respondents'computer systems were not ready to cater to the administration of GST.
The study was done in June 2010 by ACCCIM. A total of2,000 copies of the survey questionnaires were sent out, of which 1,250 copieswere received in return.
Koong said the lack of readiness was most obvious inSabah and Sarawak with a respective 92 per cent and 86 per cent of entitiesthere saying their computers were not ready for the implementation.
He said the government should also consider giving freeGST software in order to kick start the implementation.
He said training by the government as well as businessincentives were also needed for better administration of the GST.
"Twenty five per cent of respondents said they willwait for the government to provide training, while another 31 per cent arewilling to send their staff to attend external training," Koongelaborated.
Meanwhile, Cheng said businesses, especially SMEs shouldtake the initiative so that they do not overlook the importance ofcomputerising their accounts.
Once the GST is implemented, the SMEs withoutcomputerisation will be impacted directly and their operations will beaffected, he added.
The government in November 2009 expressed its plans toimplement the GST by 2011.
However, the second reading of the proposed GST Bill,originally scheduled in March 2010 was postponed by the government. — Bernama
