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Deputy Finance Minister Datuk Mohd Shahar Abdullah

KUALA LUMPUR: Parliament today approved the Windfall Profit Levy (Amendment) Bill 2022 to amend the Windfall Profit Levy Act 1998.

The bill, which contains seven clauses, among other things, aims to amend the Windfall Profit Levy Act 1998 (Act 592) to give the Finance Minister the power to extend the tax payment period under the act in the event of an emergency or public health crisis.

The amendment also aims to enable the Finance Minister to add, delete or change any terms and conditions imposed pursuant to Act 592 in order to implement the purpose of Act 592, provided that reasonable notice is given to the person bound by the terms and conditions.

The Windfall Profit Levy (Amendment) Bill 2022 presented by Deputy Finance Minister Datuk Mohd Shahar Abdullah was passed after being debated by seven Members of Parliament.

Mohd Shahar said the Windfall Profit Levy (Amendment) Bill 2022 is to amend the Windfall Profit Levy Act 1998 (Act 592) by introducing new provisions and updating existing provisions to improve the administration of the windfall profit levy.

He said the amendment to this act also allows certain facilities to be given to taxpayers, especially during public emergencies and public health crises

Parliament today also passed the Sales Tax (Amendment) Bill 2022 which contains 10 clauses and the Service Tax (Amendment) Bill 2022 which contains seven clauses.

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The Sales Tax (Amendment) Bill 2022, to amend the Sales Tax Act 2018 (Act 806), involves amending four existing sections and inserting five sections, one schedule and one new section into the act.

Mohd Shahar said among the amendments to the act was to expand the scope of sales tax by imposing sales tax on low value goods (LVG) that are sold online and those goods are imported into Malaysia.

Currently, LVG worth RM500 and below are not subject to any tax when imported into Malaysia in accordance with the de minimis facility.

Mohd Shahar said this has caused unfair treatment to local traders because imported goods are not taxed, while locally produced goods are subject to sales tax at a set rate.

The Service Tax (Amendment) Bill 2022 is to amend the Service Tax Act 2018 (Act 807) which, among other things, aims to facilitate the industry and taxpayers by extending the time period from what has been set under the act.

Mohd Shahar said this amendment is also in the form of general administration aimed at providing convenience to industry players and taxpayers. - Bernama


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