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Tee Yong clarifies GST collection in Chinese schools

PETALING JAYA: The collection of Goods and Services Tax (GST) by some 300 Chinese primary schools could have been due to a misunderstanding, said Deputy Finance Minister Datuk Chua Tee Yong (pic).

Chua said vendors usually provided services to schools, such as conducting computer classes for students.

“These vendors have registered for GST and are collecting the tax.

“From what I understand, the PIBG (parents-teachers associations) is only collecting on behalf of vendors. They do not profit,” Chua told reporters at the Customs headquarters in Kelana Jaya here.

He was referring to complaints made by Persatuan Jaringan Ibubapa Pencinta Pendidikan Bahasa Zhong Hua (Jia Zong).

Since last year, Jia Zong had approached the Education Ministry and the Customs Department over the issue, with copies of letters from SJK(c) Puay Chai 2’s PIBG as proof to show GST was included in school fees and fees for mental arithmetic classes.

Chua explained that only invoices from GST-registered businesses contained a GST portion. PIBGs cannot charge GST.

He said PIBGs are allowed to pass on the vendor’s charge to the parents but the GST should not be in their receipts.

“For example, a service costing RM10.00 is RM10.60 with GST. Their (the PIBG’s) receipt should only show RM10.60,” he said.-thestar

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