Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 8): My EG Services Bhd shares rose as much as 3.36% to emerge as one of the top 10 gainers on Bursa Malaysia as at 3pm today, following the enactment of the Sales Tax Bill 2018 in the Dewan Rakyat yesterday.  

The Bill, read for the third time by Finance Minister Lim Guan Eng before it was passed, forms part of the SST regime that will be implemented from Sept 1.

At 3.00pm, the stock was up 2 sen or 1.68% to RM1.21, with 28.25 million shares traded.  

In a July 23 note, CIMB Investment Bank Research said MyEG had been working on a SST monitoring system which the government could use to reduce leakages when the tax is launched in September. 

Its senior analyst Nigel Foo said MyEG mooted a tax monitoring system project in 2010, which was then used to track the goods and services tax (GST) when it was introduced in April 2015.  

"MyEG’s SST system could be used to track SST on a live basis and reduce leakages. We believe the government does not have a system to track SST on a live basis," he said.   

With the passing of the bill, Foo noted that the government will decide in the next one or two months as to whether it will use MyEG's SST monitoring system.  

"The company indicated that it has so far invested RM150 million in the GST monitoring project, but it did not say how much provision it plans to make for the GSTM project."  

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