“The failure to refund the input tax has caused losses to businesses in the form of ‘cost of capital’ because their cash flows have been affected. A lot of businesses had to raise prices because of this, and some had to totally shut down,” said Kota Melaka Member of Parliament Khoo Poay Tiong in a statement today.
Some businesses have been waiting for more than two years now for the refund and the failure to refund the input tax can be considered a breach of trust by the former government, he said.
Khoo said this in response to the statement by Customs Department Director-General Datuk Seri T. Subromaniam on the shortfall of RM19.4 billion in the Trust Fund to pay the GST arrears.
The MP also called on former Treasury secretary-general Tan Sri Mohd Irwan Serigar to explain on the shortfall and urged the police, the Malaysian Anti-Corruption Commission (MACC) and Attorney General's Chambers to conduct immediate investigation.