KUALA LUMPUR: My E.G. Services Bhd (MyEG) is spending RM40mil on a pilot project, involving an online-service tax system, which will kick off in March next year.
“The pilot project will involve 2,500 business outlets in the Klang Valley and will be on for a period of one year,” executive chairman Datuk Dr Norraesah Mohamad said after the company's AGM here yesterday.
“Some businesses may resist change and it may look intimidating in the first place, but as we go along, it could actually simplify their work and business operations,” she said.
The online monitoring tax system will have devices and a mechanism that can monitor and track all transactions made by business outlets.
“Previously, these business operators had to manually submit their tax declarations, but once this system, which is automated, is in place, the need for manpower and documentation will be reduced.
“We will not embark on this if it was not viable and once the device and mechanisms are in place, it will be monitored and, hopefully, the Government will apply it nationwide after the pilot project ends in March 2012,” Norraesah said.
Currently, consumers are paying a 5% service tax charge at selected businesses which will be raised to 6% in January next year.
On the company's outlook, managing director Wong Thean Soon said that MyEG expected to maintain its growth momentum next year with several more projects in the pipeline.
“We are happy with our current growth which, we think, is sustainable and we have achieved a growth of slightly above 20% this year, in both revenue and profit, compared with 2009,” he said.He also said the company spent about RM6mil in advertising and promotions annually.
For its financial year ended June 30, 2010, the company recorded a pre-tax profit of RM21mil on revenue of RM62mil. - Bernama
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