Dewan Rakyat Approves Four Finance Ministry Motions




The Dewan Rakyat today approved four motions tabled by the Finance Ministry on government funding and taxation
The motions were on the transfer of Malaysian Government Investment Issues (MGII) to the Development Fund under the Government Funding Act 1983 (Act 275), Customs Duties Order, Excise Duties Order, and Sales Tax Order
Deputy Finance Minister II Mohd Shahar Abdullah, when tabling the motion on the transfer of MGII, said the government transferred RM25.8 billion in receipts of the Consolidated Loan Account from the MGII current balance of RM12.50 billion for the period to Dec 31, 2019 and RM13.30 billion for the period from January to June 2020
The money was transferred from the Consolidated Loan Account to the Development Fund to meet development expenditure needs
“Under Section 4(b) of the Government Funding Act 1983, receipts from MGII can only be transferred to the Development Fund after getting the Dewan Rakyat’s approval, signified by resolution,” Shahar said
The Development Fund is a government trust fund established under the Development Funds Act 1966 to finance development projects, with transfers from the Consolidated Loan Account as its main source of finance
These shariah-compliant loan securities were issued by the government under the Government Funding Act 1983, with one of its main aims being to promote the development of the Islamic finance market
Shahar also tabled the Excise Duties (Exemption) (Amendment) (No 3) Order 2019 for exemption from having to submit laboratory reports on the sugar content of concentrated fruit and vegetable juices
For other beverage products, manufacturers or importers need to submit a laboratory report to the Customs Department confirming the sugar content is under the threshold value, to prove the product is not subject to excise duties
“This order was enforced on Dec 1, 2019,” he said
On the Sales Tax (Rates of Tax) (Amendment) Order 2019, Shahar said the amendment involves the First Schedule, Sales Tax (Rates of Tax) Order 2018 which contains a list of products subject to a five percent sales tax including laminated safety glass (tariff code 7007.29.9000) and child car seats (tariff code 9401.80.0000)
Meanwhile, the Customs Duties (Pangkor) Order 2019 was gazetted to impose import duties on motor vehicles based on the current rates under the Customs Act 1967
“This order came into effect on Jan 1, 2020,” said Shahar
All four motions were unanimously approved
- Bernama

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