Take GST chaos seriously – Sin Chew Daily

More than a month after the goods and services tax (GST) is implemented, the situation remains chaotic.

Consumers are condemning, traders are complaining, while the Customs are pressuring. The Customs has also demonstrated "extraordinary" efficiency, not only charging errant traders in court, but officers will also be going undercover to take to task traders flouting regulations.

The action, however, can only help deterring attempts of flouting regulations, but not fixing the price rise problem. The people will still have to face the brutal reality of the rising cost of living.

Meanwhile, the action has also sparked another controversy, namely whether the authorities will still allow the two-year grace period for registered traders as promised?

Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Lim Kok Cheong said yes, but Deputy Finance Minister Datuk Chua Tee Yong and Customs GST director Datuk Subromaniam Tholasy said that there is no such thing as "GST grace period". Who is right, then?

Since the implementation of GST, officers from various related departments have indeed repeatedly issued some vague or contradictory instructions.

The decision on whether mobile prepaid reloads should be exempted from the GST alone has been changed for several times, confusing consumers and traders, while becoming a laughing stock.

In addition, whether restaurants can still impose service charge has also confused customers and traders. No wonder former prime minister Tun Dr Mahathir Mohamad bluntly criticised that even the government does not understand how the GST works.

From the consumer's standpoint, the people will agree that action must be taken against errant traders and there should be no compromise. Even with the so-called two-year grace period, the acts of some traders who take advantage by massively raising prices or deliberately not issuing bills to customers must not be tolerated.

From the trader's point of view, however, it is the government who charges the GST without giving them commission, but the implementation of GST has burdened them much.

For instance, they have to spend money to install computer software, hire clerks responsible for the paperwork and pay accountants regularly to help in making reports.

As Lim said, traders are only "agents" helping the Customs in collecting the GST and thus, if some of them inadvertently commit some technical errors as they are not familiar with the GST, the Customs should understand and give them only oral or written warning, while clearly pointing out their mistakes, so that they can have a chance to correct the mistakes, instead of being prone to vigorous enforcement and charging them in court.

However, it is indeed a dilemma for law enforcement units to determine whether traders are knowingly breaching the regulations or inadvertently committing errors, as well as to be fair and just, while finding a balance between law and grace. Of course, possible corruption and abuse of power will also further complicate the problem.

Therefore, it is foreseeable that in the next one year or so, various chaotic situations will continue taking place and if prices continue to soar, civil resentment will rise to boiling point and it is an issue that must be taken solemnly, as well as become a huge test for the government. – mysinchew.com