By Aishah Mohmad Afandi
KUALA LUMPUR, Aug 11 (Bernama) – The delay in refunding the input tax from the Goods and Services Tax (GST) to companies will affect their cash flow as they might need to rely on borrowings to cover the unexpected delay.
Tax consultant from YYC Holdings Sdn Bhd, Yap Shin Siang, said companies would have to bear a financial burden as they have to operate on extra financial cost to fund such borrowings.
“In today’s scenario, businesses were uncertain whether they could get their tax refund back or not,” she told Bernama.
However, she said that it was still too early to tell if the delay in GST refunds would have any implications on small businesses or consumers.
This is because the delay in input tax was incurred on exporters and companies which have large capital upfront such as property developers, oil and gas companies, as well as warehouse and factories.....