MOF Accepts 24 Of The 57 Suggestions On The Draft Goods And Services Tax (Amendment) Bill 2012

The Ministry of Finance has accepted for implementation 24 of the 57 suggestions on the draft Goods and Services Tax (Amendment) Bill 2012. The suggestions were received during the public consultation exercise held from 2 to 27 July 2012. They will be incorporated into the revised Goods and Services Tax (Amendment) Bill 2012 or IRAS’ e-Tax guides. The remaining suggestions were not accepted for implementation as they are inconsistent with the policy objectives for the proposed legislative changes or legislative drafting conventions.

2. The draft Goods and Services Tax (Amendment) Bill 2012 proposed legislation to put into effect tax changes announced in Budget 2012, as well as changes arising from the periodic review of the Goods and Services Tax system. The key changes include:

a) GST exemption on the import and supply of investment-grade gold and precious metals;

b) A new Approved Refiner and Consolidator Scheme to relieve cash flow for refiners and local consolidators of precious metals, and enable them to claim input tax to make the first exempt supply of investment-grade precious metals after refining;

c) Extension of the scope of GST zero-rating of prescribed financial services relating to goods situated outside Singapore;

d) Allowing the Comptroller and Minister to set conditions when granting GST remission;

e) Extension of the Temporary Removal Scheme to goods that are removed temporarily from approved warehouses for repairs; and

f) Allowing zero-rating of repair services performed on qualified goods outside the Approved Specialized Warehouse.

3.  A summary of the key suggestions received on the draft Goods and Services Tax (Amendment) Bill 2012 and MOF’s responses is at Annex 1.

4.  MOF would like to thank all respondents for their suggestions.

MINISTRY OF FINANCE
04 September 2012