Pikom to resubmit proposal on GST exemption for ICT products

PETALING JAYA: The National ICT Association of Malaysia (Pikom) will resubmit its proposal to exempt all information and communications technology (ICT) products from the Goods and Services Tax (GST) to the Finance Ministry in its Budget 2017 recommendation for the industry.
“We will submit it (the proposal) by early October, or maybe much earlier,” Pikom chairman Chin Chee Seong told reporters after its ICT 2016-2017 job market outlook briefing yesterday.
“On our side, every year we want to fight for the exemption of ICT products from tax. So we will resubmit (the proposal), because that part is very important, as everybody is affected,” he added.
Meanwhile, Chin said the ICT industry contribution to the country’s economy is expected to increase further next year, driven by more new initiatives being introduced, such as the Internet of Things solution, as well as e-commerce activities.
He said the share of the ICT industry to the economy expanded from 16.5% in 2010 to 17.6% last year, adding the total ICT value in 2015 at an estimated RM155.2 billion, based on the average annual growth rate (AAGR) of 8% for the five-year period.
The ICT services’ contribution to the country’s gross domestic product (GDP) rose to 6.6% last year, from 3.3% in 2000, and is projected to reach 7% by end of this year.
“Consistent with industry growth, salaries also rose although at a slower growth rate,” Chin said.
Pikom’s research committee chairman Woon Tai Hai added that the 5.3% salary growth last year for the overall average monthly salary for ICT professionals is the lowest in eight years.
“Perhaps it is also a wake-up call for the industry to realise that although salaries have been growing, future salary growth cannot be taken for granted,” he added, noting oil and gas sector still ranked as one of the top-paying industries despite the current industry downturn.