Lembaga Pembangunan Industri Pembinaan Malaysia Act 1994 · Updated to 1 Dec 2017 · Part VIII · Levy
34. Imposition of levy
Official textFrom Laws of Malaysia Online, unchanged
Every contractor shall declare and submit to the Lembaga, in the manner as may be prescribed by the Lembaga, any contract which he has been awarded on any construction works.
contractor
“contractor” means a person who carries out or completes or undertakes to carry out or complete any construction works;
For every contract referred to in subsection (1), whether stamped or not, having a contract sum of above five hundred thousand ringgit, the contractor shall be liable to pay to the Lembaga a levy at the rate of a quarter per centum of the contract sum.
Lembaga
“Lembaga” means the Lembaga Pembangunan Industri Pembinaan Malaysia established under section 3;
Every contractor shall disclose fully to the Lembaga all the facts and circumstances affecting his liability to pay the levy.
The Lembaga shall notify the contractor of the amount of levy to be paid within such period as it may prescribe and such notification by the Lembaga shall be prima facie evidence as to the amount of levy to be paid by the contractor.
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Pembinaan Malaysia
The Minister may, by order published in the Gazette, vary the rate of levy specified in subsection (2).
Minister
“Minister” means the Minister for the time being charged with the responsibility for matters relating to works;
In the case where there are more than one contractor who are parties to a contract referred to in subsection (1), each and every such contractor are jointly and severally liable to pay the levy, unless otherwise proven to the contrary to the satisfaction of the Lembaga.
Where the Lembaga has reason to believe that any condition in any contract referred to in subsection (1) has the direct or indirect effect of—
altering the contract sum subjected to levy which is payable or which would otherwise have been payable;
relieving any person from any liability which has arisen or which would otherwise have arisen to pay the levy;
evading or avoiding any duty or liability which is imposed or would otherwise have been imposed on any person by this Act; or
hindering or preventing the operation of this Act in any respect, the Lembaga may, without prejudice to such validity as it may have in any other respect or for any purpose, disregard or vary such condition and make such adjustments as it thinks fit, with a view to counteracting the whole or any part of such direct or indirect effect of such condition in the contract.
In exercising its powers under subsection (7), the Lembaga may—
treat the total value of any construction works or any part of it to be the value of the contract sum;
make such computation or amendment of any value of any construction works or contract as may be necessary to revise
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any person’s liability to pay the levy or impose any liability to pay the levy on any person in accordance with its exercise of those powers; and
make such amendments as may be necessary to revise any person’s liability to pay the levy or impose any liability to pay the levy on any person in accordance with its exercise of those powers.
Where a contractor fails to pay any levy due within the prescribed period by the Lembaga, the contractor shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit or four times the amount of such levy payable, whichever is higher.
A contractor who contravenes subsection (1) or (3) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding fifty thousand ringgit.
Levy payable as civil debt due to the Lembaga
Terms defined in s 2
construction works
Defined · s 2“construction works” means the construction, extension, installation, repair, maintenance, renewal, removal, renovation, alteration, dismantling, or demolition of— (a) any building, erection, edifice, structure, wall, fence or chimney, whether constructed wholly or partly above or below ground level; (b) any road, harbour works, railway, cableway, canal or aerodrome; (c) any drainage, irrigation or river control works; (d) any electrical, mechanical, water, gas, petrochemical or telecommunication works; or (e) any bridge, viaduct, dam, reservoir, earthworks, pipeline, sewer, aqueduct, culvert, drive, shaft, tunnel or reclamation works, and includes— (A) any works which form an important and integral part of or are preparatory to or temporary for the works described in paragraphs (a) to (e), including site clearance, soil investigation and improvement, earth-moving, excavation, laying of foundation, site restoration and landscaping; or (B) procurement of construction materials, equipment or workers, necessarily required for any work described in paragraphs (a) to (e);
contractor
Defined · s 2“contractor” means a person who carries out or completes or undertakes to carry out or complete any construction works;
Lembaga
Defined · s 2“Lembaga” means the Lembaga Pembangunan Industri Pembinaan Malaysia established under section 3;
Minister
Defined · s 2“Minister” means the Minister for the time being charged with the responsibility for matters relating to works;