'States must team up to battle Putrajaya on GST'

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The Johor government should not to take the easy way out by absorbing the Goods and Service Tax (GST) imposed on government services," said Johor DAP chairperson Liew Chin Tong.

 

Instead, Liew, who is also Kluang MP, said Johor should team up with other states in pressuring Putrajaya to grant exemption on government services.

 

"The Johor government should work with other state governments to present a joint position on the matter at the National Finance Council and not to seek the short cut of absorbing the GST at the expense of Johor’s taxpayers.

 

"The federal government's estimated revenue in Budget 2015 is RM235 billion while the Johor government’s estimated revenue for Budget 2015 is RM1.24 billion.

 

"It just doesn't make sense for the state absorb the GST when the state is receiving such a meagre sum of revenue compared to the federal government," Liew (photo) said in a statement today.

 

The Johor government yesterday announced plans to absorb RM3.19 million in GST imposed on services provided by local governments as well as the state government.

 

This comes after Johor Sultan Ibrahim Ismail Iskandar in his opening speech at the state assembly criticised the imposition of GST being on government services.

It said it "did not make sense" as it is a basic responsibility to the rakyat, the sultan said.

 

The monarch had asked the Johor government to seek Putrajaya to exclude local and state governments from having to impose GST for its services.

 

Penang Chief Minister Lim Guan Eng had also written to Prime Minister Najib Abdul Razak requesting for GST exemption on government services but said Putrajaya has yet to respond.

'MB should flex muscles'

In a separate statement today, Johor Pakatan Rakyat gave full support to the Johor sultan's stance that GST should not be imposed on government services.

 

The Johor Pakatan leadership is led by state Opposition Leader Boo Cheng Hau, who is also DAP's Skudai assemblyperson, PAS' Aminolhuda Hassan and PKR's Bukit Batu assemblyperson Jimmy Puah.

 

They noted that Johor Menteri Besar Khaled Nordin in his speech had urged the Royal Malaysian Customs to take cognisance of the Johor Sultan's speech on GST but urged the MB himself take concrete actions.

 

“As the state chief executive who has the necessary powers, Khaled should take tougher and more effective action to ensure GST does not burden the rakyat," Puah said.

Guan Eng: Johor sultan exposed BN's lie on GST



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