YOURSAY | ‘And will rakyat be required to pay GST when using rail services?’

ECRL: Gov't confirms GST relief for Chinese firm

Shark Fins Belong on Sharks: The people thank Amanah vice-president Husam Musa and others who risked being not protected by the Whistleblower Protection Act in bringing this shady matter surrounding yet another dark, megalomaniacal trench of a project to the murky surface.

I suppose, when a child is caught eating a whole bar of chocolate, his best defence would be that his bones need the calcium from the milk in the sugary treat.

Whatever it is, one conclusion can now be made: The lines between "bumiputera" and "anything China" are now seriously blurred; and yes, a country is indeed privileged when its finance minister can make decisions of colossal consequences without consulting its Parliament, or at least its prime minister.

Oh wait, our prime minister is our finance minister.

Anonymous #19098644: By calling for an open tender, you will get the best price. When the project was mooted, the experts estimated the cost of the East Coast Rail Link (ECRL) project at RM30 billion. When the contract was signed, it was RM55 billion.

At first Prime Minister Najib Abdul Razak said it was Chinese investment, but the truth was it was nothing but a construction project which was funded by the Chinese but is to be paid by the rakyat.

Of course, anyone can give preferential interest rates when you factor in the entire cost into the final pricing.

So should all public infrastructure projects be free from the Goods and Services Tax (GST) from now for the same reasons given by the government?

Anonymous 494481459995345: I’m not a GST expert here, but since this “exemption” only applies to the China Communications Construction Company (CCCC), and the GST is a consumption tax which is imposed on the value added at every stage of the supply chain, would this mean that Malaysian companies which form that supply chain will have their short-term cash flow severely affected by this multi-billion ringgit exemption?

Cogito Ergo Sum: The rakyat are now helping a great nation like China by subsidising the GST payment for their goods and services.

This is a political decision and has nothing to do with Customs director-general Subromaniam Tholasy. Aren’t we already taxed enough?

Salvage Malaysia: Yes, this is absurd. Companies big and small are suffering in Malaysia because of GST.

In terms of the value added to the Malaysian economy, which do you think contributes more - ECRL or the Malaysian companies in all sort of industries?

Anonymous_1406820656: Honestly, is this project necessary or beneficial to the people? Would it not be better to save the money and reduce GST for the people instead?

Anonymous 2440681500979251: If the principle is based on reducing costs, then this should apply to essential goods. We are getting taxed left, right and centre. Why provide GST relief to this China company?

At the end of the day, the rakyat is going to pay for all services. The government is enslaved for a number of years to service the loan. So why the special treatment?

Two questions we should ask is, firstly, why is this out in the open only now when the opposition raised the issue; and secondly, will the rakyat be required to pay GST when the rail services are used?

See-To: CCCC granted relief to avoid gov't paying itself GST

Kheng: Wow, on top of paying interest at 3.25 percent for the massive loan, we are forfeiting GST at 6 percent as well.

I am of the opinion if the ECRL project is carried out through open tender, we could have got a better deal and at a lower price, GST included.

Why are MCA leaders Wee Ka Siong, Liow Tiong Lai, Ti Lian Ker and the rest all silent on this matter?

Malaysians, wise up. Make a difference in GE14. Do not think of electing MPs who will attend kenduris, repair broken drains, et cetera.

Caripasal: CCCC is the end user. When CCCC was awarded the project, the calculation of the cost of the entire project may have included the GST payment.

When the BN government waived the GST, it possibly means CCCC made an extra 6 percent profit from the project. In other words, Malaysians are poorer by about RM3.3 billion (6% of RM55 billion) from GST relief to CCCC.

Perhaps it is a small sum to BN, as compared to tens of billions of ringgit allegedly stolen from 1MDB.

Cogito Ergo Sum: BN strategic communications deputy director Eric See-To, get your accountant to explain to you the concept of “fiscal policies” and all its derivative meaning.

As the days go by, and as desperation reaches fever pitch, the reasoning from the BN strategic communications is changing from the sublime to the ridiculous.

SmartTraveller: All main contractors of projects are billed with 6 percent GST to the government. GST is included in projects for hospitals, roads, drainage work, et cetera. Our suppliers and vendors need to claim back their GST portion too.

See-To, your clarification is invalid. Why is a Chinese company exempted?

Anonymous 1176761438416179: See-To, you can explain and justify all you like. CCCC is a big and rich China-owned company which gets exempted, whereas I, a mere mortal with little means, pay GST everywhere. To me, it just does not add up.

Ultimately, I and many future generations of Malaysians will indirectly have to pay the interest and the loan to China from the eighth year onwards. Indeed, the project should be scrapped by voting for Pakatan Harapan.

CHKS: So does this mean it is okay to impose GST on the rakyat, but not to impose GST on the government?

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