KOTA KINABALU (Sept 22): Companies which register for the Goods and Services Tax (GST) after Dec 31 this year will be fined, said Deputy Finance Minister Datuk Chua Tee Yong in a Bernama report.
Businesses that are not registered for the GST will also be unable to claim input tax credits, thus affecting their operations, he added.
Companies should register before year-end to give them time to evaluate the impact of the new tax regime on their businesses, Bernama quoted Chua as saying after a dialogue entitled "Understanding GST for Sabah SMEs" here today.
Chua said some 1,500 GST registrations are received nationwide daily, and there are ongoing efforts to raise the figure to between 2,000 and 2,500.
As of yesterday, 44,500 out of 300,000 eligible companies have registered nationwide, with the target to have 140,000 companies registered by year-end, he said in the Bernama report.
On the influence of the GST on price differences between the peninsula and Sabah, Chua said the GST is only one component determining market prices, other than the exchange rate, supply and demand, and wages.