2012 WILL BE RIGHT TO INTRODUCE GST, SAYS ACCCIM

KUALA LUMPUR, July 16 (Bernama) -- The Associated Chinese Chambers of
Commerce & Industry of Malaysia (ACCCIM) says 2012 will be the appropriate time
for the government to introduce the Goods and Services Tax (GST).

Its Deputy Chairman of SMEs & Head of SMEs Survey Unit, Koong Lin Loong,
said a majority of businesses felt that they should be given at least 24 months
to prepare for the new tax system.

Quoting the ACCCIM 2010 SMEs Survey findings, Koong said 33 per cent of the
respondents had said that their businesses were not prepared for the
implementation due to a lack of information from the government.

"The government needs to strengthen its efforts in this regard. It needs to
educate the public through various mediums for a positive view on the GST,"
ACCCIM President William Cheng meanwhile, highlighted.

He suggested the government draw up a clear timetable and provide more
details so that the public have sufficient time to understand and prepare
accordingly.

By having sufficient preparation, the public, especially the businesses will
not be caught by surprise or have any resistance and misunderstanding of the
GST, Cheng explained.

The survey also revealed that 80 per cent of respondents' computer systems
were not ready to cater to the administration of GST.

The study was done in June 2010 by ACCCIM. A total of 2,000 copies of the
survey questionnaires were sent out, of which 1,250 copies were received in
return.

Koong said the lack of readiness was most obvious in Sabah and Sarawak with
a respective 92 per cent and 86 per cent of entities there saying their
computers were not ready for the implementation.

He said the government should also consider giving free GST software
in order to kick start the implementation.

He said training by the government as well as business incentives were also
needed for better administration of the GST.

"Twenty five per cent of respondents said they will wait for the government
to provide training, while another 31 per cent are willing to send their staff
to attend external training," Koong elaborated.

Meanwhile, Cheng said businesses, especially SMEs should take the initiative
so that they do not overlook the importance of computerising their accounts.

Once the GST is implemented, the SMEs without computerisation will be
impacted directly and their operations will be affected, he added.

The government in November 2009 expressed its plans to implement the GST by
2011.

However, the second reading of the proposed GST Bill, originally scheduled
in March 2010 was postponed by the government.

--BERNAMA