Any imposition of goods and services tax (GST) on any new items must be approved by the cabinet for it to go into effect immediately, said Second Finance Minister Johari Abdul Ghani.
Johari was commenting on the announcement by the Royal Malaysian Customs (RMC) yesterday on the cancellation of the GST on additional 60 food items which were supposed to go into effect July 1, 2017.
"The items are not supposed to be subject to GST at the moment. I have to tell it to the Customs authorities that each item to be subjected to the GST should be brought to the level of the Ministry of Finance and we will bring it to the cabinet.
"It (Customs department) cannot impose (GST) without the approval of the cabinet," he told reporters during the Iftar ceremony of the Finance Ministry in Putrajaya last night.
Also present was Secretary-General of Finance Ministry Mohd Irwan Abdullah Serigar.
Johari said the proposed imposition of the GST on 60 food items was made at the level of the department without referring to the ministry to be finalised.