Penang BN has accused Chief Minister Lim Guan Eng of "twisting" facts in referring to the Johor sultan's remark on the Goods and Services Tax (GST).

 

State BN chief Teng Chang Yeow said the Johor ruler ordered local authorities to stop collecting GST for its services while Lim claimed the Penang government has to pay GST on the state's operating budget.

 

Teng said operating budget and administrative expenditure are two different matters and Lim  was clearly trying to divert the issue from one to the other.

 

"It was a misleading statement by the DAP-led government that it must pay GST on its operating budget," Teng said at a press conference today.

 

"In his attempt to paint a negative perception of BN, it is clear that the chief minister is caught with his pants down for twisting facts.

 

"His attempt to mislead the people by riding on their dissatisfaction in GST has boomeranged on his credibility.

 

"If one wants to be a twister, be a professional twister, and not a half past six twister," stressed the state Gerakan chief.

 

Teng was referring to Lim's ( photo ) statement yesterday that the Johor sultan had exposed BN's failed attempt to convince Permatang Pauh voters during the recent by-election there that government services are not subject to the GST.

 

  Lim was then referring to Teng's claim that the chief minister was misleading the public when he said the GST would also cover government services.

 

In his opening speech at the Johor state assembly, Sultan Ibrahim Ismail Iskandar had said GST imposed on government services "did not make sense" as it is a basic responsibility to the rakyat.

 

The ruler urged Johor to seek an exemption from Putrajaya to exclude local and state governments from having to impose GST for its services.

 

Yesterday, Prime Minister Najib Razak said the government will explain the use of extra revenue obtained through the GST.

 

Najib said the government would act against irresponsible price hikes, as well as be transparent on the usage of GST collected.