Malaysian logging and timber companies are unprepared for the government’s proposed Goods and Services Tax (GST), according to the Sarawak Timber Association (STA).
STA’s survey of 565 members shows 52% of companies have misconceptions about GST, while some 54% of respondents think prices will need to be increased because the tax would increase costs.
STA chief executive Dr Lee Hua Seng said members’ awareness of GST was superficial.
He said the burden for the tax, a levy on the final consumption of good and services, would be borne by end consumers.
STA will conduct seminars on GST throughout Sarawak during February to address the misconceptions highlighted in the survey.
