(Apr 2): Petty traders operating on the Petaling Jaya City Council’s (MBPJ) premises will not have to pay the Goods and Services Tax (GST) on rental, The Star Online reported.

MBPJ public relations officer Zainun Zakariah was quoted by the portal as saying the charges would be absorbed by the council.

“We do not want to burden the small traders such as those who run food business at the council food court. As a temporary measure, their GST will be borne by the council. We are uncertain if this measure will be implemented for a long term,” she said.

Larger commercial businesses located on MBPJ premises, however, would still be required to pay GST on rental, she said.

“Bigger scale business operational from council assets such as the 8th Avenue, Subang Square and Kelana Square will be imposed with the 6% GST when they pay their monthly rental,” Zainun told the portal.

She added that the council's Valuation Department would soon notify the bigger business operators renting from the council's premises that they were not exempted from the GST charge. She said clarification would also be provided if necessary.

"However the bigger business operators are mostly well aware of the GST and they are prepared,” she said.

The Star Online also quoted Zainun saying that the GST will not be imposed on the council's and assessment rates and summons.

Citing as example the council's dog licence charges of RM10 per year, she said this would remain the same and not be imposed with an additional 6% GST charge. – The Malaysian Insider