8/7/2014

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MINISTRY OF DOMESTIC TRADE,
CO-OPERATIVES AND CONSUMERISM
GST SEMINAR
8 July 2014
PWTC, Kuala Lumpur
Consumers are urged to make rational choices,
spend prudently and report unethical traders to
the authorities. In this regard, the Ministry of
Domestic Trade, Cooperatives and
Consumerism will intensify enforcement efforts
through the Price Control and Anti-
Profiteering Act 2011"
SECOND THRUST: STRENGTHENING
FISCAL MANAGEMENT
GOODS AND SERVICES TAX (GST)
BUDGET 2014 SPEECH ON THE 25TH OCTOBER 2013
BY YAB DATO' SRI MOHD NAJIB BIN TUN HAJI ABDUL RAZAK,
PRIME MINISTER AND MINISTER OF FINANCE
ANNOUNCE IMPLEMENTATION
OF THE GOODS AND SERVICES TAX
(GST)
ANNOUNCE MEASURES TAKEN BY
THE GOVERNMENT TO ENHANCE
AND STRENGHTENFINANCIAL
POSITION AND STUDY ON
IMPLEMENTATION OF GST IS AT
ITS FINAL STAGE
ANNOUCEMENT OF GOODS AND
SERVICES TAX (GST) TO REPLACE
THE PRESENT SALES TAX AND
SERVICE TAX (SST) EFFECTIVE
APRIL 1, 2015.
10 SEPTEMBER 2004 23 OCTOBER 2009 25 OCTOBER 2013
BUDGET 2005 BUDGET 2014 BUDGET 2010
ANNOUNCEMENTS ON GST
REPLACED & REPEALED
THE PRICE CONTROL ACT
1946 (121 ACT)
PCAPA ENFORCED ON
1 APRIL 2011
ENABLE THE GOVERNMENT TO
DETERMINE THE PRICE OF
GOODS AND CHARGE FOR
SERVICES
PROHIBIT
PROFITEERING
TO PROTECT CONSUMER
INTEREST
TO ENSURE RAKYAT ARE NOT
BURDEN BY UNDULY PRICE
INCREASE
PRICE CONTROL AND
ANTI-PROFITEERING ACT 2011
8/7/2014
2
IMPLEMENTATION POLICIES
THIS ACT IS NOT INTENDED TO CONTROL PROFIT OF
BUSINESSES
TO PREVENT BUSINESSES FROM MAKING
UNREASONABLY HIGH PROFIT THAT WILL AFFECT
CONSUMER INTEREST
TO ENSURE BUSINESSES DO NOT TAKE ADVANTAGE OF A
SITUATION TO RAISE PRICES OR CHARGES UNREASONABLY
PROVISIONS OF PRICE CONTROL AND
ANTI-PROFITEERING ACT 2011
PRICE CONTROL
CONTINUE TO
ENFORCED
PRICE CONTROL
CONTINUE TO
ENFORCED
PRICE CONTROL FOR
SUGAR AND FACE
MASK
PRICE CONTROL FOR
SUGAR AND FACE
MASK
PRICE CONTROL
SCHEME FOR ALL
MAJOR FESTIVE
SEASONS
PRICE CONTROL
SCHEME FOR ALL
MAJOR FESTIVE
SEASONS
PRICE
CONTROL
PROFITEER IS
MAKING PROFIT
UNREASONABLY HIGH
PROFITEER IS
MAKING PROFIT
UNREASONABLY HIGH
PROFITEERING IS AN
OFFENCE
PROFITEERING IS AN
OFFENCE
REGULATIONS TO
PRESCRIBE PROFITEERING
MECHANISM
REGULATIONS TO
PRESCRIBE PROFITEERING
MECHANISM
ANTI -
PROFITEERING
COARSE GRAIN WHITE SUGAR
(RM 2.84/KG)
FINE GRAIN WHITE SUGAR
(RM 2.94/KG)
1 PLY
(RM7.00/BOX)
2 PLY
(RM10.00/BOX@ RM0.20/PCS)
3 PLY
(RM0.80/PCS)
N95
(RM6.00/PCS)
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PRICE CONTROL UNDER
THE PRICE CONTROL AND ANTI-PROFITEERING ACT 2011
EFFECTIVE
AUGUST 26, 2009
SUGAR
FACE
MASK
EFFECTIVE
SEPTEMBER 13, 2006
MAXIMUM RETAIL
PRICE NOW
OCTOBER 26, 2013
LIVE / STANDARD / SUPER CHICKEN
CHICKEN EGG GRADE A / GRADE B / GRADE C
LOCAL BONE-IN MUTTON
LOCAL BEEF
TOMATO
RED CHILLI
GRATED COCONUT
WHITE POMFRET
INDIAN MACKEREL
TO CURB PRICE INCREASE DURING
FESTIVE PERIOD
ESSENTIAL FESTIVE GOODS
POTENTIAL HIKE IN PRICE DUE TO HIGH
DEMAND
IMPLEMENT DURING FESTIVE SEASONS
CHINESE NEW YEAR
HARVEST FESTIVAL
GAWAI
HARI RAYA PUASA
DEEPAVALI
CHRISTMAS
FESTIVE SEASONS PRICE CONTROL SCHEME
8/7/2014
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PRICES OF SUBSIDIZED CONTROLLED GOODS
LIQUIDFIED PETROLEUM GAS (LPG)
10KG (RM19.00)
12KG (RM22.80)
14KG (RM26.60)
PURE PALM COOKING OIL (P. Msia)
500G (RM1.85)
1KG (RM3.30)
2KG (RM6.25)
3KG (RM9.00)
5KG (RM13.35)
BLENDED PALM COOKING OIL (P.Msia)
500G (RM2.05)
1KG (RM3.60)
2KG (RM7.20)
3KG (RM10.35)
5KG (RM14.70)
COOKING OIL @ PLASTIC BAGS
(RM2.50/KG)
PETROL RON 95 (RM2.10/LITRE)
PETROL RON 97 (RM2.90/LITRE) *
DIESEL (RM2.00/LITRE)
GENERAL PURPOSE WHITE FLOUR
(RM1.35/KG)
CONTROL OF SUPPLLIES ACT 1961
ADMINISTRATIVE PRICE CONTROL
MANIPULATION OF SUPPLY AND
HOARDING
PROFITEERING
IMPLEMENTATION
OF GST
RATIONALISE
SUBSIDY
WEATHER
CONDITIONS OR
NATURAL
DISASTER
SPECIAL EVENTS
MANIPULATION
DUE TO SUPPLY
DISRUPTIONS
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WHAT SITUATIONS CAUSES PROFITEERING?
LEGISLATION & ENFORCEMENT
11 12
MDTCC
TO AVOID EXPOSING CONSUMERS TO
GREATER THAN NECESSARY PRICE
INCREASE OF GOODS & SERVICES
DURING GST
TO AVOID EXPOSING CONSUMERS TO
GREATER THAN NECESSARY PRICE
INCREASE OF GOODS & SERVICES
DURING GST
ENFORCE THE PRICE CONTROL AND
ANTI-PROFITEERING ACT 2011
TO CURB PROFITEERING
ENFORCE THE PRICE CONTROL AND
ANTI-PROFITEERING ACT 2011
TO CURB PROFITEERING
TO ENSURE THERE IS NO EXPLOITATION
OR MANIPULATION BY BUSINESSES
TO ENSURE THERE IS NO EXPLOITATION
OR MANIPULATION BY BUSINESSES
CONSUMERS TO RECEIVE THE BENEFITS
OF ANY INDIRECT TAX REDUCTIONS
CONSUMERS TO RECEIVE THE BENEFITS
OF ANY INDIRECT TAX REDUCTIONS
ENFORCEMENT COVERS ALL BUSINESSES ENFORCEMENT COVERS ALL BUSINESSES
CUSTOMS
COLLECTS REVENUE IN THE FORM OF
CONSUMPTION TAX (GST)
COLLECTS REVENUE IN THE FORM OF
CONSUMPTION TAX (GST)
ENFORCE
THE GOODS AND SERVICES TAX ACT 2014
ENFORCE
THE GOODS AND SERVICES TAX ACT 2014
GST REGISTRANTS
UNDER THE GST ACT 2014
GST REGISTRANTS
UNDER THE GST ACT 2014
MDTCC ROLE DURING IMPLEMENTATION
OF THE GOODS AND SERVICES TAX
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LEGISLATION
- PRICE CONTROL
AND ANTI-
PROFITEERING ACT
2011
- MECHANISM TO
CONTROL
PROFITEERING
RELATED TO GST
ENFORCEMENT
ENFORCEMENT OF
THE PRICE CONTROL
AND ANTI-
PROFITEERING ACT
2011
DATA BASE
DATA BASE FOR
PRICES OF GOODS
AND CHARGES
FOR SERVICE
BEFORE & AFTER
IMPLEMENTATION
OF GST
ADVOCACY
- EDUCATE
CONSUMERS &
BUSINESSES
- TO CREATE
CONSUMERS
AWARENESS
- TO INSTILL
GOOD
BUSINESS
PRACTICES
CALL CENTRE
COMPLAINTS
&
INFORMATION
MDTCC STEERING COMMITTEE
CHAIR ED BY THE SECRETARY GENERAL OF MDTCC
MEMBERS - MDTCC, MOF AND CUSTOMS
MONITOR PROGRESS UNDER RESPECTIVE SCOPE OF FUNCTION
MDTCC STEERING COMMITTEE
CHAIR ED BY THE SECRETARY GENERAL OF MDTCC
MEMBERS - MDTCC, MOF AND CUSTOMS
MONITOR PROGRESS UNDER RESPECTIVE SCOPE OF FUNCTION
MDTCC IN PREPARATION
FOR THE IMPLEMENTATION OF GST
PRICE CONTROL AND ANTI-PROFITEERING ACT 2011
OFFENCE OF PROFITEER
PROFITEER MEANS MAKING PROFIT UNREASONABLY HIGH.
PROFITEER IN SELLING OR OFFERING TO SELL OR SUPPLYING OR OFFERING TO
SUPPLY ANY GOODS OR SERVICES COMMITS AN OFFENCE.
OFFENCE OF PROFITEER
PROFITEER MEANS MAKING PROFIT UNREASONABLY HIGH.
PROFITEER IN SELLING OR OFFERING TO SELL OR SUPPLYING OR OFFERING TO
SUPPLY ANY GOODS OR SERVICES COMMITS AN OFFENCE.
SECTION 14(1) PCAPA 2011
MECHANISM TO DETERMINE UNREASONABLY HIGH PROFIT THE MINISTER SHALL
PRESCRIBE THE MECHANISMTO DETERMINE THAT PROFIT IS UNREASONABLY HIGH.
MECHANISM TO DETERMINE UNREASONABLY HIGH PROFIT THE MINISTER SHALL
PRESCRIBE THE MECHANISMTO DETERMINE THAT PROFIT IS UNREASONABLY HIGH.
SECTION 15(1) PCAPA 2011
ADMENDMENTS TO THE PRICE CONTROL AND ANTI-PROFITEERING ACT 2011
PRICE CONTROL AND ANTI-PROFITEERING (MECHANISM TO DETERMINE
UNREASONABLY HIGH PROFIT) (GOODS AND SERVICES TAX) REGULATION 201_
ADMENDMENTS TO THE PRICE CONTROL AND ANTI-PROFITEERING ACT 2011
PRICE CONTROL AND ANTI-PROFITEERING (MECHANISM TO DETERMINE
UNREASONABLY HIGH PROFIT) (GOODS AND SERVICES TAX) REGULATION 201_
ENFORCE THE PROFITEERING
LEGISLATION
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MECHANISM TO DETERMINE
PROFITEERING
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SHALL NOT INCLUDE ANY ELEMENT OF
TAXES WHICH IS ENTITLED TO BE CLAIM
IN DETERMINING PRICES OF GOODS OR
CHARGES FOR SERVICES
SHALL BE NO INCREASE IN THE NET
PROFIT MARGIN OF ANY GOODS AND
SERVICES WITHIN THE PRESCRIBED
PERIOD
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MECHANISM TO DETERMINE PROFITEERING
(GOODS AND SERVICES TAX)
PRICE CONTROL AND
ANTI-PROFITEERING
(MECHANISM TO
DETERMINE
UNREASONABLY HIGH
PROFIT) (GOODS AND
SERVICES TAX)
REGULATIONS 201_
PROFITEERING
SECTION 10A
PCAPA
(AMENDMENT)
ACT 2014
8/7/2014
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PROHIBITS BUSINESSES TO INCLUDE THE FOLLOWING ITEMS AS PART OF THE
PRICE OF THE GOODS AND CHARGES FOR THE SERVICES :
ANY CREDIT FOR INPUT TAX WHICH IS CLAIMABLE AGAINST OUTPUT TAX
ANY SPECIAL REFUND OF SALES TAX
SHALL NOT INCREASE THE NET PROFIT MARGIN FOR ANY GOODS OR
SERVICES. THE NET PROFIT MARGIN SHALL BE IN RINGGIT
THE PERIOD IN WHICH THE NET PROFIT MARGIN SHALL NOT INCREASE SHALL
BE BASED ON AN APPROPRIATE PERIOD PRESCRIBED BEFORE AND AFTER THE
IMPOSITION OF GST
BASIS TO DETERMINE THE APPROPRIATE NET PROFIT MARGIN SHALL BE BASE
ON THE NET PROFIT MARGIN ON A PRESCRIBED DATE DURING THE PERIOD
PRESCRIBE BEFORE GST IS IMPOSED
IMPOSED ON ALL BUSINESSES
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MANUFACTURER
WHOLESALER
PURCHASE PRICE = RM106.00
(-) GST (6%) = RM 6.00
RM100.00
WHOLESALER
RM106.00
Cost + Margin = RM100
GST (6%) = RM6
INPUT TAX
RETAILER
RM137.80
Cost of Goods = RM100
Profit Margin = RM 30
Selling Price WITHOUT GST = RM 130
GST (6%) = RM7.80
CONSUMER
RM169.60
Cost of Goods = RM 130
Profit Margin = RM 30
Selling Price WITHOUT GST = RM 160
GST (6%) = RM9.60
RETAILER
PURCHASE PRICE = RM137.80
(-) GST (6%) = RM 7.80
RM 130.00
INPUT TAX
SELLING PRICE
SELLING PRICE
SELLING PRICE
COST : Raw materials, utilities,
telephones, furnitures,
equipments, rental, etc
RM9.60
GST paid by
consumer
RM9.60
GST paid by
consumer
Before GST Before GST
Mechanism for determining whether a profit is unreasonably high has been made
in the period prescribed prior to the effective date.
Formula: Net Profit Margin in Ringgit derived from calculations of
Selling Price, Cost of Goods and Operating Cost.
After GST After GST
Mechanism for determining whether a profit is unreasonably high has been made
in the period prescribed from the effective date
Formula: Net Profit Margin in Ringgit derived from calculations of
Selling Price, Cost of Goods, Operating Cost and Input & Output Tax
(GST)
A profit is
unreasonably
high
A profit is
unreasonably
high
NPM in Ringgit on any date in the period prescribed prior to the effective date of
GST exceeds NPM in Ringgit on a prescribed date in the same period prescribed
prior to the effective date of GST
NPM in Ringgit in the period prescribe from the effective date of GST exceeds NPM
in Ringgit on a prescribed date in the period prescribed prior to the effective date of
GST
PROPOSED PRICE CONTROL AND ANTI-PROFITEERING
(MECHANISM TO DETERMINE UNREASONABLY HIGH PROFIT)
(GOODS AND SERVICES TAX) REGULATIONS 201_
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1/4/2015
GST
EFFECTIVE DATE
(IMPOSITION
OF GST)
IMPOSTION OF
NET PROFIT
MARGIN STOPS
A PRESCRIBED PERIOD DURING WHICH
THERE SHALL BE NO INCREASE IN THE NET
PROFIT MARGIN AFTER GST
SHALL BE THE NPMON A
PRESCRIBED DATE IN THE PERIOD
PRESCRIBED PRIOR TO THE
EFFECTIVE DATE OF GST
1/1/2015
NO INCREASE IN THE NET PROFIT MARGIN
OBLIGATION TO MAINTAIN THE NET PROFIT MARGIN IN RINGGIT APPLIES TO ALL
BUSINESSES
1/7/2014
GST ACT
2014
COMES
INTO
OPERATION
DETERMINING THE NET PROFIT
MARGIN BEFORE GST
8/7/2014
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ILLUSTRATIONS
DETERMINATION OF
SELLING PRICE
AND
NET PROFIT MARGIN
Cost of the goods RM106.00
(INCLUSIVE SALES TAX)
Add : Operating Cost RM23.40
(INCLUSIVE SALES & SERVICE TAX)
Actual Cost of Goods RM129.40
Add:
Selling Cost / Selling price RM139.40
Cost of the goods RM106.00
(INCLUSIVE SALES TAX)
Add : Operating Cost RM23.40
(INCLUSIVE SALES & SERVICE TAX)
Actual Cost of Goods RM129.40
Add:
Selling Cost / Selling price RM139.40
Cost of the goods RM106.00
Less: 6%GST (Input Tax COG) (RM 6.00)
RM100.00
Add : Operating Cost RM23.40
Less : 6% GST (Input Tax OC) (RM 1.30)
RM 22.10
Actual Cost of Goods RM122.10
Add:
Selling Cost RM132.10
Add: 6%GST(Output Tax) RM 7.90
Selling price RM140.00
Cost of the goods RM106.00
Less: 6%GST (Input Tax COG) (RM 6.00)
RM100.00
Add : Operating Cost RM23.40
Less : 6% GST (Input Tax OC) (RM 1.30)
RM 22.10
Actual Cost of Goods RM122.10
Add:
Selling Cost RM132.10
Add: 6%GST(Output Tax) RM 7.90
Selling price RM140.00
BEFORE GST
TAXABLE PERSON
AFTER IMPOSITION OF GST
Net profit margin RM10.00 Net profit margin RM10.00
1/4/2015
EFFECTIVE DATE
(IMPOSITION OF GST)
NO INCREASE IN THE NET PROFIT MARGIN
(6%/106% x RM23.40)
(6%/106% x RM106.00)
DEDUCT INPUT TAX
MAINTAIN NET
PROFIT MARGIN
MAINTAIN NET
PROFIT MARGIN
1/1/2015
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Cost of Goods Including 6% GST RM140.00
Add : Operating Cost Including 6% GST
RM 23.40
Actual Cost of Goods RM163.40
Add:
SELLING PRICE RM173.40
* No GST on Selling Price
Cost of the goods RM132.10
(6% GST) ( Input Tax ) + RM 7.90
Operating Cost RM 22.10
(6% GST) ( Input Tax ) + RM 1.30
MAINTAIN
NET PROFIT
MARGIN
OTHER THAN TAXABLE PERSON
AFTER IMPOSITION OF GST
Net Profit Margin RM 10.00
MANUFACTURER
GOODS
&
SERVICES
INPUT TAX CREDIT AGAINST OUTPUT TAX
CLAIMABLE BY TRADERS
INPUT TAX CREDIT AGAINST OUTPUT TAX
CLAIMABLE BY TRADERS
GST ATAS
INPUT
= CUKAI INPUT
GST ATAS
OUTPUT
= CUKAI OUTPUT
OUTPUT TAX
6%
WHOLESALER RETAILER
INPUT TAX
CONSUMER
SHALL NOT INCREASE
THE NET PROFIT MARGIN IN RINGGIT
SHALL NOT INCREASE
THE NET PROFIT MARGIN IN RINGGIT
MECHANISM FOR PROFITEERING
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ENFORCEMENT ON PROFITEERING
DURING THE IMPLEMENTATION GST
SHALL NOT INCLUDE INPUT TAX CREDIT &
SPECIAL SALES TAX REFUND IN PRICES
AND CHARGES
RAW MATERIALS,
RENTAL, UTILITIES,
FUEL, FURNITURES,
OFFICE EQUIPMENTS,
PROFFESIONAL
SERVICES ETC
8/7/2014
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REGISTERED PERSON REGISTERED PERSON
IMPOSE GOODS AND SERVICES TAX
INPUT TAX CLAIMABLE
PROHIBITED TO INCLUDE ANY INPUT
TAX CREDIT CLAIMABLE AGAINST
OUTPUT TAX & SPECIAL SALES TAX
REFUND AS PART OF PRICES AND
CHARGES
INPUT TAX IS NOT A COST TO
BUSINESS
OTHER THAN REGISTERED
PERSON
OTHER THAN REGISTERED
PERSON
DO NOT IMPOSE
GOODS AND SERVICES TAX
GST CHARGED ON INPUTS
AND NON-CLAIMABLE
GST MAY BE INCLUDED AND
ACCOUNTED AS PART OF
PRICE OF GOODS OR CHARGES FOR
SERVICES
GST IS A COST TO BUSINESS
ENFORCEMENT ON PROFITEERING
OBLIGATION OF REGISTERED PERSON AND OTHER THAN
REGISTERED PERSON
KEEPING AND MAINTAINING RECORD RELATING TO THE BUSINESS
OPERATION
PRESERVED FOR A PERIOD OF 7 YEARS FROM THE LATEST DATE
TO WHICH THE RECORD RELATES
DUTY TO KEEP AND MAINTAIN RECORDS
SALES RECORDS INCLUDING RECEIPTS AND SALES BOOKS
PURCHASES RECORDS INCLUDING INVOICES FROM SUPPLIERS
EXPENSES RECORDS INCLUDING PAYMENT RECORDS, INVOICES
AND PARTICULARS OF ACQUISITIONS
DOCUMENTS RELATING TO THE DETERMINATION OF PRICING FOR
THE GOODS AND SERVICES
RECORDS OF REMUNERATIONS, ALLOWANCES OR WAGES
TAX RECORDS AND RELATED DOCUMENTS
TYPES OF RECORDS
ENFORCEMENT ON RECORD KEEPING
FIRST OFFENCE
FINE < RM500,000
SECOND OFFENCE
FINE < RM 1,000,000
BODY
CORPORATE
FIRST OFFENCE
FINE < RM100,000 OR/AND
< 3 YEARS IMPRISONMENT
SECOND OFFENCE
FINE < RM250,000 OR/ AND
< 5 YEARS IMPRISONMENT
NON - BODY
CORPORATE
PENALTY FOR BREACH OF
PROFITEERING
PRICE DATABASE
8/7/2014
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CATEGORIES
GOODS &
SERVICES
PARLIAMENTARY
CONSTITUENCIES
COLLECTION OF DATA COVERING
A WIDE RANGE OF
GOODS AND SERVICES
BASIS & INDICATOR TO
GAUGE REASONABLE
PROFIT MARGINS OF
GOODS AND SERVICES
REFERENCE FOR PRICE
MOVEMENTS & PRICE
TRENDS OF GOODS AND
SERVICES IN THE MARKET
ENFORCEMENT / CALL CENTRE /
CONSUMERS / BUSINESSES
LOCATIONS
REFERRAL
POINTS
DATA OF GOODS & SERVICES
CATEGORIES OF GOODS AND SERVICES
80
CATEGORIES
Fresh goods, Frozen
foods, Processed foods,
Cooked Foods, beverages,
Subsidize/Controlled Goods,
diary products,
Pre-packed foods
Apparels, household goods
& furnitures, vehicles
spare parts, Personal
Care Products, Books,
newspapers and Printings,
Recreational & sports
equipments,Computer
Equipments,
Electronics Equipments,
stationeries
Household services,
Health Services, health tourism,
Domestic vacations,
Car services, Audiovisual
Equipments, Recreations, Pets,
Transportations & logistics
services
IMPLEMENTATION OF
PRICE COLLECTIONS
PHASE I
28 Aug 2014 28 Sept 2014
PHASE II
6 Oct 2014 9 Nov 2014
PHASE III
17 Nov 2014 21 Dec 2014
PHASE IV
9 Feb 2015 15 Mac 2015
PHASE V
1 Apr 2015 17 May 2015
PHASE VI
25 May 2015 28 Jun 2015
PHASE VII
6 Jul 2015 9 Aug 2015
PHASE VIII
17 Aug 2015 20 Sept 2015
PHASE IX
28 Sept 2015 11 Nov 2015
PHASE X
16 Nov 2015 20 Dec 2015
2
0
1
4
2
0
1
5
TELEPHONE & SMS
1 Malaysia One Call Centre (1MOCC) 03-80008000
Toll free Hotline : 1 800 886 800
SMS to 15888 by typing KPDNKK COMPLAINT < details of the complaint>
INTERNET
website : http://www.kpdnkk.gov.my
e-Aduan : http://eaduan.kpdnkk.gov.my
Email : e-aduan@kpdnkk.gov.my
WALK-IN
Ministry of Domestic Trade, Cooperatives and Consumerism
- offices located in Putrajaya/States/Branches
HOW TO REACH US?
8/7/2014
9
THANK YOU