Latest news with #Vico
The Star
18 hours ago
- Business
- The Star
‘Basic necessities remain exempt'
PETALING JAYA: Basic necessities will continue to be exempted from the sales tax, while non-essential items will be imposed a tax rate of 5% to 10%, says the Finance Ministry. This follows the ministry's announcement on the revised and expanded Sales and Service Tax (SST) rate, as announced in Budget 2025, which comes into effect on July 1. The ministry said the move is to strengthen the country's fiscal position by increasing revenue and broadening the tax base. It said this would improve the quality of the social safety net without over-burdening the people. 'To ensure that the majority of people are not affected by the Sales and Service Tax revision, the government is taking a targeted approach to ensure that basic goods and services are not taxed,' it said in a statement yesterday. The ministry said the additional revenue from the SST enhancements will be used to improve public services and infrastructure, and to increase cash assistance to citizens. The ministry said the SST review was done following consultations with stakeholders, including industry associations and tax agents. The legal aspects were taken into account after obtaining the feedback from these groups to minimise industry impact. Sales tax Items that remain in the 0% sales tax bracket include unprocessed items such as chicken, beef or lamb, seafood like tilapia, tongkol, prawns and squid, vegetables and local fruits as well as rice, barley, oat and wheat. Processed items with zero-rated sales tax are flour, canned sardine, sugar and salt, white bread, pasta, mee hoon, noodles and instant noodles, milk, malt drinks such as Milo, Vico and Nestum as well as cooking oil. A zero sales tax rate is also maintained for medicine and medical devices, books, journals and newspapers, livestock feed and pet food, basic construction materials such as cement, stones and sand, agricultural products like fertilisers, pesticides as well as agricultural and farming machinery. Items that will remain in the 5% sales tax bracket are abalone and lobster, quinoa, cheese, fruit jams and smartphones. Those that will see the revision of sales tax to 5% beginning July 1 are king crab, salmon and cod fish, truffle, imported strawberries, essential oils, silk fabrics and industrial machinery. Items that will remain in the 10% sales tax bracket are caviar, sharks' fin, alcoholic beverages, cigarettes, cigars and leather products. Goods that will see their sales tax increase to 10% are tungsten scrap waste, racing bicycles and antique hand paintings. Service tax The existing service tax scope will be expanded to cover six types of services: rental or leasing, construction work, financial, private healthcare, education and beauty. Rental or leasing services An 8% service tax will be imposed on rental or leasing services, with no tax imposed on residential housing, reading material, monetary leasing and tangible assets outside Malaysia. Exemptions are given to business-to-business (B2B) transactions and relief groups to avoid double taxation. MSMEs with less than RM500,000 annual turnover need not pay service tax, while non-reviewable contracts are granted a 12-month exemption from the effective date. Construction work services A 6% service tax will be levied on construction work services related to infrastructure, commercial and industrial buildings. Contractors must register if their taxable service value reaches RM1.5mil within 12 months, easing compliance for small and medium contractors. However, construction work services for residential buildings and public facilities related to residential houses are exempted from this tax. To prevent double taxation, B2B transactions will benefit from exemption facilities. Additionally, non-reviewable contracts are granted a 12-month exemption from the effective date. Financial services An 8% service tax applies to financial services based on fees or commissions. Providers must register if their total fees or commissions reach RM500,000 within 12 months. However, several services are exempt from this tax, including syariah-compliant financing profits, gains from foreign exchange and capital markets, brokerage and underwriting on life and medical insurance/takaful for individuals, fees on credit and charge cards, basic banking services (like savings and current accounts), exported financial services as well as penalty charges. B2B exemptions are also given to avoid double taxation. Certain fees in syariah-compliant transactions will receive exemptions, while exemptions for Bursa Malaysia and in Labuan are maintained. Healthcare services A 6% service tax is imposed on healthcare services provided to non-Malaysians. This includes services offered by facilities under the Private Healthcare Facilities and Services Act 1998, private traditional and complementary medicine practices and private allied health services. Providers must register if the taxable value of their services reaches RM1.5mil within 12 months. Healthcare services provided by the government and private healthcare services under the Universities and University Colleges Act 1971 and the Universiti Teknologi Mara Act 1976 are not subject to this tax. Malaysians are exempt from paying service tax on private healthcare services, private traditional and complementary medicine as well as private allied health services. Education services A 6% service tax applies to private pre-school, primary and secondary schools, including higher learning institutions and language centres. There is no minimum turnover threshold for registration but schools charging more than RM60,000 in annual tuition fees per student must register. Public education services are not taxable. Malaysian citizens who hold a disabled persons (OKU) card are exempt from paying the service tax. For higher learning institutions and language centres, there is no minimum turnover threshold for registration, but those providing education services to non-citizens must register. Malaysians are also exempt from this tax. Beauty services An 8% service tax applies to beauty services. Providers must register if their taxable services reach RM500,000 within 12 months. The beauty services include facial, manicure and pedicure, hairstyling, tattoo, make-up services and body slimming, including herbal, milk and flower baths.
Daily Maverick
03-06-2025
- Business
- Daily Maverick
Weaponising the Public Finance Management Act: A new legal trend threatening public sector discipline
A concerning trend is emerging in public sector employment. Employees facing disciplinary action are increasingly wielding the Public Finance Management Act 1 of 1999 (PFMA) not as the accountability tool it was designed to be, but as a shield against workplace consequences. This strategic pivot transforms financial governance legislation into an employment litigation weapon with potentially far-reaching implications for public administration. The PFMA was enacted in 1999 with the primary purpose of establishing a robust framework for financial governance in South Africa's public sector. At its core, the act aims to secure transparency, accountability, and sound management of revenue, expenditure, assets and liabilities across national and provincial government institutions. Among its core objectives, it provides mechanisms to prevent irregular, unauthorised, as well as fruitless and wasteful expenditure, thereby safeguarding public resources against misuse. The recent Labour Court case of Vico v The Department of Forestry, Fisheries and Environment offers a compelling illustration of this new phenomenon. Thembalethu Vico, a director within the department who faced dismissal following disciplinary proceedings related to the removal of confiscated abalone valued at approximately R7.5-million, sought to challenge his dismissal through an unusual legal avenue: by attacking the procedural aspects of his disciplinary hearing through the lens of the PFMA. At the heart of Vico's application was an attempt to secure declaratory relief related to what he characterised as incomplete disciplinary proceedings. His arguments centred on several PFMA-related assertions: that the employer had 'unjustly and unfairly terminated' the briefing contract of the disciplinary hearing chairperson; that this termination caused 'unreasonable delay' in his disciplinary hearing; that respondents 'contravened the applicant's right to fair labour practice'; and rather notably, that expenditure on recusal applications against the chairperson constituted 'fruitless and wasteful expenditure' under the PFMA. The Labour Court's response was unequivocal. In his judgment, Judge Robert Lagrange not only dismissed the application, but characterised it as 'vexatious in nature', ordering the applicant to pay the respondents' costs. 'An attempt to circumvent the proper forums for labour disputes' The court found that Vico was 'no stranger to legal principles and reasoning' and determined that his PFMA-based arguments represented an attempt to circumvent the proper forums for labour disputes — namely the General Public Service Sectoral Bargaining Council where he had already lodged an unfair dismissal claim. This case highlights a broader issue deserving closer scrutiny: the strategic repurposing of financial management legislation to serve employment law objectives. The PFMA, enacted in 1999, was designed to promote transparent and effective management of government finances — not as a mechanism for employees to challenge disciplinary outcomes. Yet increasingly, we witness creative legal arguments that stretch the PFMA beyond its intended boundaries. Several notable examples demonstrate this concerning pattern in other contextual scenarios: Unsuccessful tender bidders increasingly invoke the PFMA not to address genuine financial irregularities, but to contest legitimate procurement decisions they simply disagree with. By alleging technical PFMA violations, these bidders attempt to overturn procurement outcomes through financial management legislation rather than following appropriate procurement appeal processes. Some employees facing disciplinary action for performance or conduct issues have strategically repositioned themselves as 'whistleblowers' under section 51 of the PFMA. By claiming they were disciplined for reporting financial misconduct, rather than for their own workplace infractions, they attempt to transform standard employment disputes into protected disclosure matters. Some senior employees facing poor performance reviews have contested their evaluations by claiming they were instructed to take actions that would violate the PFMA. This transforms performance management into a complex legal dispute about financial legislation interpretation. Public entities facing pressure to implement organisational changes have cited PFMA compliance concerns as reasons to delay implementation, effectively using financial legislation as a strategic tool to resist operational reforms. Perhaps most troublingly, the PFMA has become weaponised in political contexts, with allegations of technical PFMA violations used to undermine political opponents in positions of financial accountability, regardless of whether actual financial mismanagement occurred. In the misconduct context, the implications of this trend are significant. Public sector managers face the daunting prospect of defending not only the substantive merits of disciplinary decisions, but also navigating complex arguments about whether their internal processes satisfy the technical requirements of financial legislation. This creates a chilling effect on departmental decision-making, potentially undermining efforts to address misconduct effectively. More worryingly, this legal strategy diverts valuable court resources. Judge Lagrange noted that the application was largely an attempt to revisit a matter that had already been decided, writing that 'it beggars belief that the applicant could have seriously believed that he could simply avoid the unequivocal effect of the judgment by approaching this court under the guise of an application for declaratory relief'. When courts must attend to such applications, genuine cases requiring judicial attention face delays. The Department of Forestry, Fisheries and the Environment's approach in the Vico case provides a template for addressing such claims. Rather than becoming entangled in debates about the PFMA's application to employment matters, they successfully redirected the court's attention to the jurisdictional question: Whether the Labour Court was the appropriate forum for what was essentially an attempt to relitigate disciplinary proceedings through a different legal framework. Distinct forums and remedies PFMA matters and employment disputes are meant to follow different procedural paths, with distinct forums and remedies designed to preserve the integrity of both systems. When properly invoked, PFMA concerns should follow established channels that begin with internal departmental controls, escalate to Treasury oversight, proceed through audit mechanisms via the Auditor-General's examination, involve executive accountability and operate through specific financial misconduct procedures established in the PFMA — all pathways that exist distinctly from labour dispute mechanisms. Notably absent from the PFMA is any provision making the Labour Court a forum for adjudicating PFMA violations, which is why the Department of Forestry, Fisheries and the Environment correctly focused on the jurisdictional question, highlighting that the applicant was attempting to bypass proper forums for both employment disputes (the General Public Service Sectoral Bargaining Council) and financial governance concerns (internal controls, Treasury oversight and potentially criminal proceedings). As this trend continues to evolve, public sector employers would be wise to develop proactive strategies. This includes ensuring that disciplinary procedures are documented with meticulous attention to detail, that financial decisions related to such proceedings are properly authorised, and that legal teams are prepared to address PFMA-based arguments directly. The PFMA represents a crucial pillar of democratic governance and institutional transformation. The act has become instrumental in the country's ongoing struggle against corruption and State Capture — challenges that have threatened South Africa's democratic foundations and economic stability. However, the judiciary's response in the Vico case sends a clear message: the PFMA cannot be weaponised to circumvent established labour relations processes. This judgment establishes an important precedent that may discourage frivolous applications of this nature. Ultimately, public administration requires both financial accountability and efficient personnel management. When these systems are placed in artificial opposition through creative litigation strategies, neither objective is well served. The Labour Court's firm stance in the Vico case represents a welcome correction — one that reinforces the proper boundaries between financial governance and employment law in South Africa's public sector. DM
Time of India
16-05-2025
- Business
- Time of India
Turkish goods off shelves in city over support to Pak
1 2 Lucknow: Amid nationwide economic backlash against Turkiye gaining traction in the country, consumer and trader boycotts have hit Turkish goods hard in Lucknow too. Turkiye is facing massive backlash for supporting Pakistan amid tensions with India. Pakistan had also used Turkish drones on a large scale in the military conflict with India. Markets that once thrived on Turkish imports are experiencing a significant decline in demand, reflecting a shift in consumer behaviour amid the diplomatic fallout. Items like dry fruits, wrinkle-free clothing, imported Turkish apples and home appliances from brands such as Vico are being removed from shelves as consumers are prefering domestic alternatives. Even Turkish jewellery, once a favourite among local retailers, is now facing rejection. State president of the UP Kapda Udyog Vyapaar Pratinidhi Mandal , Ashok Motiyani, said, "This boycott is a reflection of the strong patriotic sentiment that exists among traders and consumers in Uttar Pradesh. Turkish products, which once had a loyal customer base due to their quality and variety, are now facing rejection because the people here want to send a clear message. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas For Sale in Dubai Might Surprise You Villas In Dubai | Search Ads Get Rates Undo Supporting imports from a country seen as siding with Pakistan is not acceptable to us." "Earlier, Turkish goods, especially dry fruits and flexible fabric clothing, were in great demand. However, now there is a noticeable shift. Customers are becoming more aware and are actively inquiring about the origin of products. Many outrightly refuse to purchase Turkish brands... We have clearly understood this sentiment and have started stocking more Indian-made products to meet the rising demand," said Mahanagar president of the Akhil Bhartiya Udyog Vyapaar Mandal, Suresh Chhablani. "Many shops have stopped placing orders for Turkish dry fruits, apples and even jewellery. Vico brand appliances, which were once considered premium imports, have also taken a hit. Retailers are no longer interested in stocking or promoting them. It's a conscious and collective decision among traders to support the national cause," said president of the Bhootnath Vyapar Mandal, Devendra Gupta. Kaushal Kishore Kesarwani, owner of Badri Saraf, Bhootnath market, said: "The Bhootnath Vyapaar Mandal has collectively decided to boycott all Turkish imports, whether it's jewellery, dry fruits or appliances. We believe every trader should act with the same sense of responsibility."
