Anti Profiteering Slide
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Transcript of Anti Profiteering Slide
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8/7/2014
1
MINISTRY OF DOMESTIC TRADE,CO-OPERATIVES AND CONSUMERISM
GST SEMINAR8 July 2014
PWTC, Kuala Lumpur
Consumers are urged to make rational choices,spend prudently and report unethical traders tothe authorities. In this regard, the Ministry ofDomestic Trade, Cooperatives andConsumerism will intensify enforcement effortsthrough the Price Control and Anti-Profiteering Act 2011"
SECOND THRUST: STRENGTHENINGFISCAL MANAGEMENTGOODS AND SERVICES TAX (GST)
BUDGET 2014 SPEECH ON THE 25TH OCTOBER 2013BY YAB DATO' SRI MOHD NAJIB BIN TUN HAJI ABDUL RAZAK,
PRIME MINISTER AND MINISTER OF FINANCE
ANNOUNCE IMPLEMENTATIONOF THE GOODS AND SERVICES TAX
(GST)
ANNOUNCE MEASURES TAKEN BYTHE GOVERNMENT TO ENHANCEAND STRENGHTEN FINANCIALPOSITION AND STUDY ON
IMPLEMENTATION OF GST IS ATITS FINAL STAGE
ANNOUCEMENT OF GOODS ANDSERVICES TAX (GST) TO REPLACETHE PRESENT SALES TAX ANDSERVICE TAX (SST) EFFECTIVE
APRIL 1, 2015.
10 SEPTEMBER 2004 23 OCTOBER 2009 25 OCTOBER 2013
BUDGET 2005 BUDGET 2014BUDGET 2010
ANNOUNCEMENTS ON GSTREPLACED & REPEALEDTHE PRICE CONTROL ACT
1946 (121 ACT)
PCAPA ENFORCED ON1 APRIL 2011
ENABLE THE GOVERNMENT TODETERMINE THE PRICE OFGOODS AND CHARGE FOR
SERVICES
PROHIBITPROFITEERING
TO PROTECT CONSUMERINTEREST
TO ENSURE RAKYAT ARE NOTBURDEN BY UNDULY PRICE
INCREASE
PRICE CONTROL ANDANTI-PROFITEERING ACT 2011
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IMPLEMENTATION POLICIES
THIS ACT IS NOT INTENDED TO CONTROL PROFIT OFBUSINESSES
TO PREVENT BUSINESSES FROM MAKINGUNREASONABLY HIGH PROFIT THAT WILL AFFECTCONSUMER INTEREST
TO ENSURE BUSINESSES DO NOT TAKE ADVANTAGE OF ASITUATION TO RAISE PRICES OR CHARGES UNREASONABLY
PROVISIONS OF PRICE CONTROL ANDANTI-PROFITEERING ACT 2011
PRICE CONTROLCONTINUE TOENFORCED
PRICE CONTROLCONTINUE TOENFORCED
PRICE CONTROL FORSUGAR AND FACEMASKPRICE CONTROL FORSUGAR AND FACEMASK
PRICE CONTROLSCHEME FOR ALLMAJOR FESTIVESEASONS
PRICE CONTROLSCHEME FOR ALLMAJOR FESTIVESEASONS
PRICECONTROL
PROFITEER ISMAKING PROFIT
UNREASONABLY HIGHPROFITEER IS
MAKING PROFITUNREASONABLY HIGH
PROFITEERING IS ANOFFENCEPROFITEERING IS ANOFFENCE
REGULATIONS TOPRESCRIBE PROFITEERING
MECHANISMREGULATIONS TO
PRESCRIBE PROFITEERINGMECHANISM
ANTI -PROFITEERING
COARSE GRAIN WHITE SUGAR(RM 2.84/KG)
FINE GRAIN WHITE SUGAR(RM 2.94/KG)
1 PLY(RM7.00/BOX)
2 PLY(RM10.00/BOX@ RM0.20/PCS)
3 PLY(RM0.80/PCS)
N95(RM6.00/PCS)
7
PRICE CONTROL UNDERTHE PRICE CONTROL AND ANTI-PROFITEERING ACT 2011
EFFECTIVEAUGUST 26, 2009
SUGAR
FACEMASK
EFFECTIVESEPTEMBER 13, 2006MAXIMUM RETAIL
PRICE NOWOCTOBER 26, 2013
LIVE / STANDARD / SUPER CHICKEN
CHICKEN EGG GRADE A / GRADE B / GRADE C
LOCAL BONE-IN MUTTON
LOCAL BEEF
TOMATO
RED CHILLI
GRATED COCONUT
WHITE POMFRET
INDIAN MACKEREL
TO CURB PRICE INCREASE DURINGFESTIVE PERIOD ESSENTIAL FESTIVE GOODS POTENTIAL HIKE IN PRICE DUE TO HIGHDEMAND
IMPLEMENT DURING FESTIVE SEASONS CHINESE NEW YEAR HARVEST FESTIVAL
GAWAI HARI RAYA PUASA
DEEPAVALI CHRISTMAS
FESTIVE SEASONS PRICE CONTROL SCHEME
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PRICES OF SUBSIDIZED CONTROLLED GOODSLIQUIDFIED PETROLEUM GAS (LPG) 10KG (RM19.00) 12KG (RM22.80) 14KG (RM26.60)PURE PALM COOKING OIL (P. Msia) 500G (RM1.85) 1KG (RM3.30) 2KG (RM6.25) 3KG (RM9.00) 5KG (RM13.35)BLENDED PALM COOKING OIL (P.Msia) 500G (RM2.05) 1KG (RM3.60) 2KG (RM7.20) 3KG (RM10.35) 5KG (RM14.70)
COOKING OIL @ PLASTIC BAGS(RM2.50/KG)
PETROL RON 95 (RM2.10/LITRE)
PETROL RON 97 (RM2.90/LITRE) *
DIESEL (RM2.00/LITRE)
GENERAL PURPOSE WHITE FLOUR(RM1.35/KG)
CONTROL OF SUPPLLIES ACT 1961
ADMINISTRATIVE PRICE CONTROLMANIPULATION OF SUPPLY AND
HOARDING
PROFITEERING
IMPLEMENTATIONOF GST
RATIONALISESUBSIDY
WEATHERCONDITIONS OR
NATURALDISASTER
SPECIAL EVENTS
MANIPULATIONDUE TO SUPPLYDISRUPTIONS
10
WHAT SITUATIONS CAUSES PROFITEERING?
LEGISLATION & ENFORCEMENT
11 12
MDTCCTO AVOID EXPOSING CONSUMERS TOGREATER THAN NECESSARY PRICEINCREASE OF GOODS & SERVICES
DURING GST
TO AVOID EXPOSING CONSUMERS TOGREATER THAN NECESSARY PRICEINCREASE OF GOODS & SERVICES
DURING GSTENFORCE THE PRICE CONTROL AND
ANTI-PROFITEERING ACT 2011TO CURB PROFITEERING
ENFORCE THE PRICE CONTROL ANDANTI-PROFITEERING ACT 2011
TO CURB PROFITEERING
TO ENSURE THERE IS NO EXPLOITATIONOR MANIPULATION BY BUSINESSES
TO ENSURE THERE IS NO EXPLOITATIONOR MANIPULATION BY BUSINESSES
CONSUMERS TO RECEIVE THE BENEFITSOF ANY INDIRECT TAX REDUCTIONS
CONSUMERS TO RECEIVE THE BENEFITSOF ANY INDIRECT TAX REDUCTIONS
ENFORCEMENT COVERS ALL BUSINESSESENFORCEMENT COVERS ALL BUSINESSES
CUSTOMSCOLLECTS REVENUE IN THE FORM OF
CONSUMPTION TAX (GST)COLLECTS REVENUE IN THE FORM OF
CONSUMPTION TAX (GST)
ENFORCETHE GOODS AND SERVICES TAX ACT 2014
ENFORCETHE GOODS AND SERVICES TAX ACT 2014
GST REGISTRANTSUNDER THE GST ACT 2014
GST REGISTRANTSUNDER THE GST ACT 2014
MDTCC ROLE DURING IMPLEMENTATIONOF THE GOODS AND SERVICES TAX
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LEGISLATION
- PRICE CONTROLAND ANTI-
PROFITEERING ACT2011
- MECHANISM TOCONTROL
PROFITEERINGRELATED TO GST
ENFORCEMENT
ENFORCEMENT OFTHE PRICE CONTROL
AND ANTI-PROFITEERING ACT
2011
DATA BASE
DATA BASE FORPRICES OF GOODSAND CHARGESFOR SERVICE
BEFORE & AFTERIMPLEMENTATION
OF GST
ADVOCACY
- EDUCATECONSUMERS &BUSINESSES- TO CREATECONSUMERSAWARENESS- TO INSTILL
GOODBUSINESSPRACTICES
CALL CENTRE
COMPLAINTS&
INFORMATION
MDTCC STEERING COMMITTEE CHAIR ED BY THE SECRETARY GENERAL OF MDTCC MEMBERS - MDTCC, MOF AND CUSTOMS MONITOR PROGRESS UNDER RESPECTIVE SCOPE OF FUNCTION
MDTCC STEERING COMMITTEE CHAIR ED BY THE SECRETARY GENERAL OF MDTCC MEMBERS - MDTCC, MOF AND CUSTOMS MONITOR PROGRESS UNDER RESPECTIVE SCOPE OF FUNCTION
MDTCC IN PREPARATIONFOR THE IMPLEMENTATION OF GST PRICE CONTROL AND ANTI-PROFITEERING ACT 2011
OFFENCE OF PROFITEER PROFITEER MEANS MAKING PROFIT UNREASONABLY HIGH. PROFITEER IN SELLING OR OFFERING TO SELL OR SUPPLYING OR OFFERING TOSUPPLY ANY GOODS OR SERVICES COMMITS AN OFFENCE.
OFFENCE OF PROFITEER PROFITEER MEANS MAKING PROFIT UNREASONABLY HIGH. PROFITEER IN SELLING OR OFFERING TO SELL OR SUPPLYING OR OFFERING TOSUPPLY ANY GOODS OR SERVICES COMMITS AN OFFENCE.
SECTION 14(1) PCAPA 2011
MECHANISM TO DETERMINE UNREASONABLY HIGH PROFIT THE MINISTER SHALLPRESCRIBE THE MECHANISM TO DETERMINE THAT PROFIT IS UNREASONABLY HIGH.
MECHANISM TO DETERMINE UNREASONABLY HIGH PROFIT THE MINISTER SHALLPRESCRIBE THE MECHANISM TO DETERMINE THAT PROFIT IS UNREASONABLY HIGH.
SECTION 15(1) PCAPA 2011
ADMENDMENTS TO THE PRICE CONTROL AND ANTI-PROFITEERING ACT 2011 PRICE CONTROL AND ANTI-PROFITEERING (MECHANISM TO DETERMINEUNREASONABLY HIGH PROFIT) (GOODS AND SERVICES TAX) REGULATION 201_
ADMENDMENTS TO THE PRICE CONTROL AND ANTI-PROFITEERING ACT 2011 PRICE CONTROL AND ANTI-PROFITEERING (MECHANISM TO DETERMINEUNREASONABLY HIGH PROFIT) (GOODS AND SERVICES TAX) REGULATION 201_
ENFORCE THE PROFITEERING
LEGISLATION
14
MECHANISM TO DETERMINEPROFITEERING
15
SHALL NOT INCLUDE ANY ELEMENT OFTAXES WHICH IS ENTITLED TO BE CLAIMIN DETERMINING PRICES OF GOODS ORCHARGES FOR SERVICES
SHALL BE NO INCREASE IN THE NETPROFIT MARGIN OF ANY GOODS ANDSERVICES WITHIN THE PRESCRIBEDPERIOD
16
MECHANISM TO DETERMINE PROFITEERING(GOODS AND SERVICES TAX)
PRICE CONTROL ANDANTI-PROFITEERING(MECHANISM TO
DETERMINEUNREASONABLY HIGHPROFIT) (GOODS AND
SERVICES TAX)REGULATIONS 201_
PROFITEERING
SECTION 10APCAPA
(AMENDMENT)ACT 2014
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PROHIBITS BUSINESSES TO INCLUDE THE FOLLOWING ITEMS AS PART OF THEPRICE OF THE GOODS AND CHARGES FOR THE SERVICES : ANY CREDIT FOR INPUT TAX WHICH IS CLAIMABLE AGAINST OUTPUT TAX ANY SPECIAL REFUND OF SALES TAX
SHALL NOT INCREASE THE NET PROFIT MARGIN FOR ANY GOODS ORSERVICES. THE NET PROFIT MARGIN SHALL BE IN RINGGIT
THE PERIOD IN WHICH THE NET PROFIT MARGIN SHALL NOT INCREASE SHALLBE BASED ON AN APPROPRIATE PERIOD PRESCRIBED BEFORE AND AFTER THEIMPOSITION OF GST
BASIS TO DETERMINE THE APPROPRIATE NET PROFIT MARGIN SHALL BE BASEON THE NET PROFIT MARGIN ON A PRESCRIBED DATE DURING THE PERIODPRESCRIBE BEFORE GST IS IMPOSED
IMPOSED ON ALL BUSINESSES18
MANUFACTURERWHOLESALER
PURCHASE PRICE = RM106.00(-) GST (6%) = RM 6.00
RM100.00
WHOLESALER
RM106.00
Cost + Margin = RM100GST (6%) = RM6 INPUT TAX
RETAILER
RM137.80
Cost of Goods = RM100Profit Margin = RM 30Selling Price WITHOUT GST = RM 130GST (6%) = RM7.80
CONSUMER
RM169.60
Cost of Goods = RM 130Profit Margin = RM 30Selling Price WITHOUT GST = RM 160GST (6%) = RM9.60
RETAILERPURCHASE PRICE = RM137.80(-) GST (6%) = RM 7.80
RM 130.00
INPUT TAX
SELLING PRICE
SELLING PRICE
SELLING PRICE
COST : Raw materials, utilities,telephones, furnitures,equipments, rental, etc
RM9.60GST paid byconsumer
RM9.60GST paid byconsumer
Before GSTBefore GST
Mechanism for determining whether a profit is unreasonably high has been madein the period prescribed prior to the effective date.
Formula: Net Profit Margin in Ringgit derived from calculations ofSelling Price, Cost of Goods and Operating Cost.
After GSTAfter GST
Mechanism for determining whether a profit is unreasonably high has been madein the period prescribed from the effective date
Formula: Net Profit Margin in Ringgit derived from calculations ofSelling Price, Cost of Goods, Operating Cost and Input & Output Tax(GST)
A profit isunreasonably
high
A profit isunreasonably
high
NPM in Ringgit on any date in the period prescribed prior to the effective date ofGST exceeds NPM in Ringgit on a prescribed date in the same period prescribedprior to the effective date of GST
NPM in Ringgit in the period prescribe from the effective date of GST exceeds NPMin Ringgit on a prescribed date in the period prescribed prior to the effective date ofGST
PROPOSED PRICE CONTROL AND ANTI-PROFITEERING(MECHANISM TO DETERMINE UNREASONABLY HIGH PROFIT)
(GOODS AND SERVICES TAX) REGULATIONS 201_
20
1/4/2015GST
EFFECTIVE DATE(IMPOSITION
OF GST)
IMPOSTION OFNET PROFIT
MARGIN STOPS
A PRESCRIBED PERIOD DURING WHICHTHERE SHALL BE NO INCREASE IN THE NET
PROFIT MARGIN AFTER GST
SHALL BE THE NPM ON APRESCRIBED DATE IN THE PERIOD
PRESCRIBED PRIOR TO THEEFFECTIVE DATE OF GST
1/1/2015
NO INCREASE IN THE NET PROFIT MARGIN
OBLIGATION TO MAINTAIN THE NET PROFIT MARGIN IN RINGGIT APPLIES TO ALLBUSINESSES
1/7/2014GST ACT2014COMESINTO
OPERATION
DETERMINING THE NET PROFITMARGIN BEFORE GST
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21
ILLUSTRATIONSDETERMINATION OF
SELLING PRICEAND
NET PROFIT MARGIN
Cost of the goods RM106.00(INCLUSIVE SALES TAX)
Add : Operating Cost RM 23.40(INCLUSIVE SALES & SERVICE TAX)
Actual Cost of Goods RM129.40Add:
Selling Cost / Selling price RM139.40
Cost of the goods RM106.00(INCLUSIVE SALES TAX)
Add : Operating Cost RM 23.40(INCLUSIVE SALES & SERVICE TAX)
Actual Cost of Goods RM129.40Add:
Selling Cost / Selling price RM139.40
Cost of the goods RM106.00Less: 6% GST (Input Tax COG) (RM 6.00)
RM100.00Add : Operating Cost RM 23.40Less : 6% GST (Input Tax OC) (RM 1.30)
RM 22.10
Actual Cost of Goods RM122.10Add:Selling Cost RM132.10Add: 6% GST(Output Tax) RM 7.90
Selling price RM140.00
Cost of the goods RM106.00Less: 6% GST (Input Tax COG) (RM 6.00)
RM100.00Add : Operating Cost RM 23.40Less : 6% GST (Input Tax OC) (RM 1.30)
RM 22.10
Actual Cost of Goods RM122.10Add:Selling Cost RM132.10Add: 6% GST(Output Tax) RM 7.90
Selling price RM140.00
BEFORE GST TAXABLE PERSONAFTER IMPOSITION OF GST
Net profit margin RM10.00 Net profit margin RM10.00
1/4/2015EFFECTIVE DATE
(IMPOSITION OF GST)
NO INCREASE IN THE NET PROFIT MARGIN
(6%/106% x RM23.40)
(6%/106% x RM106.00) DEDUCT INPUT TAX
MAINTAIN NETPROFIT MARGIN
MAINTAIN NETPROFIT MARGIN
1/1/2015
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Cost of Goods Including 6% GST RM140.00
Add : Operating Cost Including 6% GST
RM 23.40Actual Cost of Goods RM163.40Add:SELLING PRICE RM 173.40* No GST on Selling Price
Cost of the goods RM132.10(6% GST) ( Input Tax ) + RM 7.90
Operating Cost RM 22.10(6% GST) ( Input Tax ) + RM 1.30
MAINTAINNET PROFITMARGIN
OTHER THAN TAXABLE PERSONAFTER IMPOSITION OF GST
Net Profit Margin RM 10.00
MANUFACTURER
GOODS&
SERVICES
INPUT TAX CREDIT AGAINST OUTPUT TAXCLAIMABLE BY TRADERS
INPUT TAX CREDIT AGAINST OUTPUT TAXCLAIMABLE BY TRADERS
GST ATASINPUT= CUKAI INPUT
GST ATASOUTPUT= CUKAI OUTPUT
OUTPUT TAX6%
WHOLESALER RETAILER
INPUT TAX
CONSUMER
SHALL NOT INCREASETHE NET PROFIT MARGIN IN RINGGIT
SHALL NOT INCREASETHE NET PROFIT MARGIN IN RINGGIT
MECHANISM FOR PROFITEERING24
ENFORCEMENT ON PROFITEERINGDURING THE IMPLEMENTATION GST
SHALL NOT INCLUDE INPUT TAX CREDIT &SPECIAL SALES TAX REFUND IN PRICESAND CHARGES
RAW MATERIALS,RENTAL, UTILITIES,FUEL, FURNITURES,OFFICE EQUIPMENTS,
PROFFESIONALSERVICES ETC
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REGISTERED PERSONREGISTERED PERSONIMPOSE GOODS AND SERVICES TAX
INPUT TAX CLAIMABLE
PROHIBITED TO INCLUDE ANY INPUTTAX CREDIT CLAIMABLE AGAINSTOUTPUT TAX & SPECIAL SALES TAXREFUND AS PART OF PRICES AND
CHARGES
INPUT TAX IS NOT A COST TOBUSINESS
OTHER THAN REGISTEREDPERSON
OTHER THAN REGISTEREDPERSONDO NOT IMPOSE
GOODS AND SERVICES TAXGST CHARGED ON INPUTSAND NON-CLAIMABLE
GST MAY BE INCLUDED ANDACCOUNTED AS PART OF
PRICE OF GOODS OR CHARGES FORSERVICES
GST IS A COST TO BUSINESS
ENFORCEMENT ON PROFITEERING OBLIGATION OF REGISTERED PERSON AND OTHER THANREGISTERED PERSON
KEEPING AND MAINTAINING RECORD RELATING TO THE BUSINESSOPERATION
PRESERVED FOR A PERIOD OF 7 YEARS FROM THE LATEST DATETO WHICH THE RECORD RELATES
DUTY TO KEEP AND MAINTAIN RECORDS
SALES RECORDS INCLUDING RECEIPTS AND SALES BOOKS PURCHASES RECORDS INCLUDING INVOICES FROM SUPPLIERS EXPENSES RECORDS INCLUDING PAYMENT RECORDS, INVOICESAND PARTICULARS OF ACQUISITIONS
DOCUMENTS RELATING TO THE DETERMINATION OF PRICING FORTHE GOODS AND SERVICES
RECORDS OF REMUNERATIONS, ALLOWANCES OR WAGES TAX RECORDS AND RELATED DOCUMENTS
TYPES OF RECORDS
ENFORCEMENT ON RECORD KEEPING
FIRST OFFENCE FINE < RM500,000
SECOND OFFENCE FINE < RM 1,000,000
BODYCORPORATE
FIRST OFFENCE FINE < RM100,000 OR/AND < 3 YEARS IMPRISONMENT
SECOND OFFENCE FINE < RM250,000 OR/ AND < 5 YEARS IMPRISONMENT
NON - BODYCORPORATE
PENALTY FOR BREACH OFPROFITEERING
PRICE DATABASE
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CATEGORIES
GOODS &SERVICES
PARLIAMENTARYCONSTITUENCIES
COLLECTION OF DATA COVERINGA WIDE RANGE OF
GOODS AND SERVICES
BASIS & INDICATOR TOGAUGE REASONABLEPROFIT MARGINS OFGOODS AND SERVICES
REFERENCE FOR PRICEMOVEMENTS & PRICE
TRENDS OF GOODS ANDSERVICES IN THE MARKET
ENFORCEMENT / CALL CENTRE /CONSUMERS / BUSINESSES
LOCATIONSREFERRALPOINTS
DATA OF GOODS & SERVICES CATEGORIES OF GOODS AND SERVICES
80CATEGORIES
Fresh goods, Frozenfoods, Processed foods,
Cooked Foods, beverages,Subsidize/Controlled Goods,
diary products,Pre-packed foods
Apparels, household goods& furnitures, vehiclesspare parts, PersonalCare Products, Books,newspapers and Printings,Recreational & sportsequipments,ComputerEquipments,Electronics Equipments,
stationeriesHousehold services,
Health Services, health tourism,Domestic vacations,
Car services, AudiovisualEquipments, Recreations, Pets,
Transportations & logisticsservices
IMPLEMENTATION OFPRICE COLLECTIONS
PHASE I28 Aug 2014 28 Sept 2014
PHASE II6 Oct 2014 9 Nov 2014
PHASE III17 Nov 2014 21 Dec 2014
PHASE IV9 Feb 2015 15 Mac 2015
PHASE V1 Apr 2015 17 May 2015
PHASE VI25 May 2015 28 Jun 2015
PHASE VII6 Jul 2015 9 Aug 2015
PHASE VIII17 Aug 2015 20 Sept 2015
PHASE IX28 Sept 2015 11 Nov 2015
PHASE X16 Nov 2015 20 Dec 2015
2014 2015
TELEPHONE & SMS1 Malaysia One Call Centre (1MOCC) 03-80008000
Toll free Hotline : 1 800 886 800SMS to 15888 by typing KPDNKK COMPLAINT < details of the complaint>
INTERNETwebsite : http://www.kpdnkk.gov.my
e-Aduan : http://eaduan.kpdnkk.gov.myEmail : [email protected]
WALK-INMinistry of Domestic Trade, Cooperatives and Consumerism
- offices located in Putrajaya/States/Branches
HOW TO REACH US?
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THANK YOU