Less than 10% of companies failed to pay SST last year

PUTRAJAYA: Over 90 per cent of companies paid their Sales and Services Tax (SST) last year and the less than 10 per cent defaulting companies caused the country to lose almost RM150 million in revenue, according to the Royal Malaysian Customs Department (JKDM).

Customs deputy director-general (enforcement/compliance) Datuk Sazali Mohamad (pix) said periodic checks conducted by JKDM’s compliance and audit division showed that some companies failed to meet the set regulations.

Speaking at a press conference in conjunction with the “Handholding SST Ikrar Betul Bayar Betul” programme here today, he said actions that can be taken against defaulting companies included barring their board members from travelling abroad.

“If there are tax arrears, they will be subjected to a penalty higher than the amount of tax due or court action if necessary,“ he said, adding that although less than 10 per cent of companies defaulted it still had financial implications on the country.

Sazali said tax collection for 2022 was RM53.54 billion, an increase of 25.97 per cent or RM11.03 billion compared to the collection in 2021.

“This is due to increased collection from tax components such as sales tax, service tax, excise duty, import duty and levies. This increase in revenue also reflects JKDM’s ability and leadership in managing and administering the department at an excellent level,“ he said.

JKDM was targeting a revenue collection of RM52 billion for 2023, he said.

On the programme held today and tomorrow at Menara A, Suasana PjH here, he said it was to provide better understanding on SST legislation and the responsibility to declare and pay taxes accordingly.

The programme was targeted at SST registrants and would be expanded to all states in stages throughout February, he said. -Bernama