Putrajaya, 20th July 2018,
The impact of the Sales and Service Tax (SST) on the franchise industry will only be known when the government has decided on the tax mechanism.
Perbadanan Nasional Bhd (PNB) managing director Datuk Syed Kamarulzaman Syed Zainol Khodki Shahabudin said it was too soon to make any conclusion since the tax mechanism was still being drafted.
“We need to understand the whole implementation mechanism before we can know the possible impact (on the industry),” he said after the Give Back 2018 programme here.
Also present was Domestic Trade and Consumerism Ministry’s secretary-general Datuk Seri Jamil Salleh and Marrybrown chief executive officer Datuk Joshua Liew.
The government has proposed to introduce 10 per cent sales tax and six per cent service tax under the SST scheme, which will be implemented on Sept 1 to replace the Goods and Services Tax (GST).
Syed Kamarulzaman also said PNB had allocated RM25 million for the franchise industry development this year and half of it had been disbursed.
“We need to encourage more businesses to venture into the franchise industry. Some of the existing franchise businesses have expanded their wings abroad.”
Joshua said Marrybrown had more than 150 restaurants in Malaysia and more than 150 located abroad, with the latest in the Netherlands.
On the Give Back 2018 programme, about 30 underprivileged children were treated with food and given souvenirs.
It is a corporate social responsibility aimed to encourage franchise industry players to take part in social work.
Source: New Strait Times
Full Article : https://www.nst.com.my/news/nation/2018/07/392729/sst-mechanism-still-being-drafted