GST explanation should be more straightforward

As the deadline looms for the implementation of the goods and services tax (GST) by businesses, business owners and employees SunBiz caught up with participants at the start of a two-day seminar organised by Perbadanan Usahawan Nasional Bhd (PUNB), the Royal Malaysian Customs Department (RMCD) and Bumiputra Retail Organisation (BRO) and found that they are as puzzled as ever by the workings of the GST.
Business owners and employees of four different companies said they were still confused by what the GST entails despite most of them attending the talk on the subject for the second time.
They put down the difficulty in absorbing the intricacies of the GST to complex terms and having to contend with a language barrier for those with limited understanding of English.
One of the participants of the Comprehensive seminar on Goods and Services Tax 2014 yesterday, Hice Engineering Consultant corporate advisor Datuk Mohd Zainudin Azhar Ismail said, such talks first should gauge the level of understanding of the participants on GST, as for him he found the talk to be too general.
“The government should continuously observe the understanding of the people, especially the (business community) on GST, not only to organize a seminar," he said, adding that the talk should also be explained in a simpler way.
Zainudin, who registered his company for GST in February this year, said there are many things to be explained and the best way to make people understand is to focus on the implementation of GST which is industry and business specific.
"For me this kind of seminar is not enough, the government has to find a way to make the people understand more about the GST,” he said.
Faizal Ali, owner of Generation X Trucking Services based in Malacca, said the event should be held in every state in the country as it is difficult for the participants to travel to attend such talks.
“Overall the talk is fine, but most of the PUNB’s participants are not fluent in English, so the speakers should consider delivering it in Bahasa Malaysia,” said Faizal, whose company has seven workers and has been in operations for three years.
“We are ready for the GST. We are aware of the impact and we also have explained to our customers about the GST system, so it is easy for us to deal with them,” he added.
Rosnah Sarden, owner of Farmasi Cenderawasih Sdn Bhd that has been operating since 1997, said her company will register under GST during the seminar.
“We already expect the changes in terms of higher cost expenses, but it is good to know that businesses that have registered under GST are allowed to claim the input tax credit and claim for refund,” said Rosnah, who has attended two GST seminars organized by PUNB.
Roslinda Syead, the employee of Logamahir (M) Sdn Bhd, metal products and water meter parts and accessories’ company that has been operating for 20 years, said her company registered for GST through RMCD’s website in September this year.
“Our company is just a small company, so I think it will not be a problem for our workers to adapt with the GST system and to deal with the customers,” said Roslinda.
"We might having a problem at the earlier stage of implementation, but I think after a while we will get used to it,” Roslinda added.
Her second time attending a GST seminar organized by PNUB, Roslinda said she came back to get more detailed information on the GST implementation. The GST seminar yesterday, was attended by over 378 participants.