MOF accepts 24 suggestions from public on draft goods & services tax amendment bill

The Ministry of Finance (MOF) has accepted 24 out of 57 suggestions from the public on the draft Goods and Services Tax (Amendment) Bill 2012. 

The suggestions were received during a public consultation exercise 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 key changes include a GST exemption on the import and supply of investment-grade gold and precious metals. 

A new Approved Refiner and Consolidator Scheme will also 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. 

There will also be an extension of the scope of GST zero-rating of prescribed financial services relating to goods situated outside of Singapore. 

The Comptroller and Minister will also be allowed to set conditions when granting GST remission. 

The Temporary Removal Scheme will be extended to goods that are removed temporarily from approved warehouses for repairs. 

Zero-rating of repair services performed on qualified goods outside the Approved Specialized Warehouse will also be allowed. 

The MOF said that the remaining 33 suggestions were not accepted for implementation because they are inconsistent with policy objectives for the proposed legislative changes or legislative drafting conventions. 

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.