The following Indirect Tax Bills have been tabled for first reading in the Parliament of Malaysia on 20 July 2022:-
(a) Customs (Amendment) Bill 2022
(b) Excise (Amendment) Bill 2022
(c) Free Zones (Amendment) Bill 2022
(d) Tourism Tax (Amendment) Bill 2022
(e) Windfall Profit Levy (Amendment) Bill 2022
(f) Departure Levy (Amendment) Bill 2022
The amendments in the abovementioned Bills include amongst others, the following:
- To empower the Minister of Finance (“Minister”) to extend the period stipulated in the relevant legislations due to occurrence of any public emergency or public health crisis;
- To empower the Minister to vary the terms and conditions as determined in the relevant legislations, provided that reasonable notice is given to the person bound by the terms and conditions;
- To empower the Director General of Customs to determine the form and manner for specified matters in the relevant legislations (e.g. a claim for refund, a claim for drawback, an application for a customs ruling), instead of using the prescribed form;
[Note: Not applicable to (c), (d), (f)]
- To empower the Minister to prescribe particulars in an invoice or receipt for the purposes of Tourism Tax Act 2017; and
- To amend the deadline to pay customs duties and other charges leviable on dutiable goods to within fourteen days from the date of arrival of such goods (instead of from the date of the declaration being approved by customs), under the Customs Act 1967.
Please click on the above header link for copies of the Indirect Tax Bills 2022 at the official portal of Parliament of Malaysia for further details.
Businesses may start looking at its current formality process and procedure under the purview of Customs and identify whether there could be any opportunities/ complications surrounding the proposed changes.
Our highlights are intended to provide a general overview of the key proposed tax changes and should not be used or relied upon as a substitute for detailed advice or as a basis for formulating business decisions.
For customized guidance, please do not hesitate to reach out to your trusted KPMG adviser(s),
