KUALA LUMPUR, June 26 — The refund rate for the Goods and Services Tax has improved by five per cent since March, Customs director-general Datuk Seri Khazali Ahmad said.

“Currently, the refund rate for businesses qualified to file claims on GST stands at 75 per cent. This is a vast improvement from the initial 17 per cent when the tax was implemented,” he said.

Khazali said the refund rate was satisfactory as the improvement occurred in just over a year after the implementation of the tax.

“We are working to improve this over the coming months and will hopefully reach our target of 100 per cent before the second year of implementation,” he said.

Speaking to reporters at the “Jom Minta Resit GST” lucky draw prize presentation event at the Integrated Transport Terminal in Bandar Tasik Selatan yesterday, Khazali urged the public to be more proactive in educating themselves on the tax.

“How do you identify a business that is qualified to charge GST? How is the rate calculated? The public needs to learn what all this is about so they are not cheated,” he said, adding that the government had exhaustively tried to raise awareness.

He also called on consumers to be more proactive in reporting profiteers as this would help smooth over any problems with such traders.

“Ask for receipts and save them as proof the company or business charging you is qualified to charge GST,” he said, adding that several GST-related cases were ongoing.

 “The six per cent collected from consumers must be returned to the government.”

Khazali said GST was among the best tax regimes anywhere in the world, and the controversy surrounding the tax was unjustified.

“Malaysia has had a consumption tax in place for decades. The Sales and Service Tax was replaced with the GST,” he said.

“The tax has proven to have benefited consumers and the government greatly. The perceived problems with the tax are due to profiteers and we need the public’s cooperation to weed them out.”

Khazali said the GST lucky draw had proven to be a popular way of engaging the public and raising awareness on the tax.

“Between April and May, 13,069 participants handed in 14,968 GST receipts, of which 2,876 won prizes. This lucky draw has done a lot to increase public engagement,” he said.

On the seizure of illegal fireworks, Khazali said 113 tonnes of such merchandise worth RM4 million had been seized since January.

“All the seized material will be disposed according to proper safety guidelines in cooperation with the Fire and Rescue Department,” he said.

“Our enforcement has been effective as evidenced by the large seizures.”

He also denied that members of his department were reselling seized fireworks.

“This is untrue. We have stringent procedures and every single piece of contraband is documented and properly disposed,” he said.

In George Town, Penang, state Customs director Datuk Mohd Pudzi Man said 326 companies had failed to submit their GST return statements.

“Only 10 per cent of the total number of registered companies in the state have complied and the department is looking into taking legal action if they fail to do so,” he said.

“Forty-seven companies have been charged in court and others might face the same action soon. Most of them are retailers.

“We have certain procedures to follow before we take them to court. There will be no compromise.”

Pudzi said the “Jom Minta Resit GST” competition would help the department to identify traders who failed to submit their GST statements after cross-checking the receipts submitted by shoppers.