MBPJ to absorb GST on rental

The difference: (Left) the old council premises’ rental bill and (right) the new bill. In the new bill, the CBP is known as Value Added tax number will be listed. the bill is called ‘Invois Cukai’ (Invois Cukai)/Bill Pelbagai (Various Billing).

THE Petaling Jaya City Council (MBPJ) will absorb the Government Service Tax (GST) imposed on petty traders operating from rented council premises.

However, bigger commercial business that operates from the council premises will have to pay GST.
MBPJ public relations officer Zainun Zakariah said the council has decided to absorb the GST imposed on the rental of premises for smaller business operators for now.

“We do not want to burden the small traders such as those who run food business at the council food court. As a temporary measure, their GST will be bourne by the council. We are uncertain if this measure will be implemented for a long term,” she said.

The bigger scale business such as those operating at MBPJ commercial premises are not GST exempted.

“Bigger scale business operational from council assets such as the 8th Avenue, Subang Square and Kelana Square will be imposed with the 6% GST when they pay their monthly rental,” Zainun said.
She added the council is ready to notify each of the bigger business operators that are renting space from the council about the GST charge.

“The council’s Valuation Department will soon start calling them and provide them with clarification if required. However the bigger business operators are mostly well aware of the GST and they are prepared,” she said.

The council highlighted that council summons and assessment will not be imposed with GST .
“For example if the council dog licence is RM10 per year, we will not impose 6% on top of it,” she said.

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