A bumiputera contractors’ association has questioned why a giant like the China Communications Construction Company (CCCC) could enjoy goods and services tax (GST) relief from Putrajaya while its members have to pay GST for even the smallest construction material, like nails.

The Class F Bumiputera Contractors Association (Perkobf) president Turkiman Radion (above) called out the apparent preferential treatment accorded to the Chinese firm.

"I am quite uncomfortable looking at the situation as it has elements of favouritism.

"Even we have to pay GST when buying raw materials such as cement and nails but this (CCCC) is a big business, not small ones," he told Malaysiakini.

Turkiman said it is the construction giants that should be charged GST and not the other way round.

"Now, even poor people get hit by GST, jobless people also get hit by GST as they need to purchase goods which are charged GST.

"So if we (Malaysia) want to collect GST, it is the big companies that should pay," he said.

Yesterday, Putrajaya confirmed that it had granted CCCC a GST relief for the approximately RM60 billion East Coast Rail Link (ECRL) project after Amanah vice-president Husam Musa released documents related to the tax relief.

The Barisan National (BN) had explained that this was to reduce cost as ultimately, it is the government that commissioned the project, and this could lead to the government paying GST back to itself.

However, Turkiman insisted that CCCC should still pay GST, like other companies operating in the country.

"My view is that the government should collect GST from them as they are operating in Malaysia.

"All operations in the country should be charged GST," he said.