ALOR SETAR: The Kedah Customs Department collected RM112 million in Service Taxes in 2023, exceeding its set target of RM110 million.

State Customs director, Nor Izah Abdul Latiff, said the department has set a target of achieving an overall collection of RM1.6 billion in 2024, a significant portion of which is anticipated to come from Service Tax.

“It also involves taxes collected through services provided to government agencies and departments.

“Today, a Sales Tax and Service Tax (SST) Handholding programme was held at the Kedah Customs Complex to enhance comprehension and compliance of SST legislation,“ she said today.

She said the programme involved 300 participants from the Malaysian Malay Contractors Association, government agencies and departments as well as traders and contractors involved with SST.

“The programme was meant to guide companies that secure contracts and procure services from agencies and departments on the handling of Service Taxes.

“Checks by the department found a low level of understanding and compliance with SST legislation in terms of managing government procurement that often causes problems for the vendors as well as agencies and departments involved,“ she said.

“We call on the business community to support the government’s efforts to empower the national economy in the current challenging global business landscape,“ she said. -Bernama