PUTRAJAYA: The Customs Department will meet with local authorities in Johor soon to explain in detail the impact of the Goods and Services Tax (GST) as a whole.
The department's GST Director Datuk Subromaniam Tholasy said the engagement will help clarify certain issues and confusions on the implementation of the tax.
Subromaniam said under section 64 of the GST Act 2014, the tax was not imposed on the provision of federal and state governance.
“This also applied to local authorities and statutory bodies on the supply of regulation and enforcement activities,” he told a press conference at the Finance Ministry, here, this afternoon.
However, Subromaniam said only business activities such as the rental of halls and premises by the authorities were subject to GST.
He said GST should not be imposed on other taxes such as quit rent and other property taxes.