SIBU: Sarawak United People’s Party (SUPP) is seeking a higher threshold on e-invoice exemption for micro, small and medium enterprise (MSMEs).
Its Dudong branch chairman Wong Ching Yong called on the federal government to extend this eligibility to those earning less than RM1 million annually from the current RM150,000.
“However, it can be implemented in stages to ensure the e-invoicing system runs smoothly,” he said.
“The government should be well-aware of challenges that MSMEs face in fully implementing the e-invoicing mechanism such as higher operating costs, information technology system upgrade and lack of knowledge regarding e-invoicing.
“One set of new software to cater for e-invoicing costs about RM10,000,” he said at the branch’s mobile service held at a cafe in Jalan Chew Siik Hiong here Sunday (July 21).
Wong was commenting on the recent statement by Second Finance Minister, Datuk Seri Amir Hamzah Azizan that traders with annual sales of below RM150,000 are not required to issue e-invoices.
He said with the underlying motive of weeding out tax evasion which has cost the country a staggering RM6.34 bil last year, the Inland Revenue Board in March last year announced the mandatory adoption of e-invoicing through phases.
In the first phase, he said all businesses with a turnover exceeding RM100 million must generate e- invoices starting from next month (Aug 1) for transactions encompassing business-to- business (B2B), business-to-government (B2G) and business-to-consumer (B2C).
At the moment, according to Wong, most developed economies – including neighbouring Singapore – have implemented e-invoicing although such exercise “is not necessarily mandatory”.
“They do but it is not compulsory… however, China is seemingly pushing hard with its nationwide expansion of its fully-digitalised e-Fapiao programme,” he stated.
“A lot of Sibu businessmen have complained to me about the two local MPs who have remained silent in almost all issues which negatively affect their livelihood.
“The e- invoicing is a federal government policy which is expected to bring many predicaments to MSMEs.”
Wong, a chartered accountant, is meanwhile of the view that the federal government must bring back the Goods and Services Tax (GST) with a starting rate of two per cent.
He pointed out that GST is the predominant tax system adopted in almost all western countries such UK, France, Australia as well as Asian countries.
