Keep your promise and refund fast, Customs told

KUALA LUMPUR: Businesses have called on the Customs Department to speed up its refunds under the Goods and Services Tax (GST).

The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ter Leong Yap said some traders had yet to receive their input tax refunds although they had submitted their claims two or three months ago.

The delay had resulted in many businesses facing cash constraints which could lead to a negative chain reaction as the money was not flowing back to the market, he added.

“Business operators are urging Customs to keep to its promise as outlined under the GST Act, which says that input tax refunds will be done within 14 days for electronic submission and 28 days for manual,” Ter said at a media briefing on a GST survey conducted by the chamber’s taxation committee.

The survey was carried out between June and July among some 1,000 business people from various industries nationwide, including wholesale and retail, manufacturing, construction, hotels, and those in the import and export business.

According to its findings, most of the traders felt that the Customs’ “mysterious shoppers” tactic would not help to deter errant business operators from profiteering from the consumption tax system launched on April 1.

Koong Lin Loong, who heads the chamber’s small-and-medium enterprises and human resource development committee, said the respondents argued that the government officers should act openly to assist and educate the traders during this initial stage.

A whopping 84%, he added, complained that they did not understand the net profit margin calculation formula or know how to determine the margin for their products.

Koong pointed out that only 70% of the respondents had utilised the services of the GST hotlines and its portal.

“Some 26% replied that their problems remained unsolved and 22% said their calls went unanswered,” he added.

The report of the survey will be handed over to the related agencies, such as the Finance Ministry, International Trade and Industry Ministry and Customs Department this week.