Tax exemption for local authorities services in 2018 Budget
KUALA LUMPUR: The implementation of the Goods and Services Tax (GST) will be further improved in the 2018 Budget, with the government's plan to include tax exemption for services provided by local authorities, among others.
In tabling the 2018 Budget, themed 'Prospering an Inclusive Economy, Balancing Between Worldly and Hereafter, for the Wellbeing of Rakyat, Towards the TN50 Aspiration', at the Dewan Rakyat today, Najib said, the inclusion would take effect April 1 or October next year, according to the choice of local authorities.
The improved GST would also include a GST relief for imports of oil- and gas-related equipment under a lease agreement, supplied to customers in the country by companies in designated areas namely, Labuan, Langkawi and Tioman, effective Jan 1, 2018, he said.
"The GST should not be politicised. In fact, it saved the economy this year, where without the RM41 billion collected, we cannot imagine the nation can cater to the needs of rakyat," he said.
Najib, who is also Finance Minister, said the imports of big ticket items such as aircraft and ships by airline and shiping companies registered in Malaysia would also be given GST relief.
The GST relief would also be expanded to companies in the oil and gas industry, importing oil rigs or floating structures, effective Jan 1, 2018, he said.
"Reading materials comprising all types of magazines and comics will be zero-rated, effective Jan 1, 2048, to streamline the GST treatment.
"Construction of school buildings and houses of worship, funded through donations are given GST relief. It applies for construction contracts signed on or after April 1, 2017," he said.
Najib said the government also planned to provide GST relief to cruise operators from paying the broad-based tax on handling services provided by port operators in Malaysia, effective from January next year to Dec 31, 2020.
Meanwhile, he said, the management and maintenance services of stratified residential buildings supplied by the Joint Management Body and management corporations were not subjected to GST.
"This treatment is expanded to cover the management and maintenance services provided by housing developers, effective Jan 1, 2018," he said. — Bernama