Wednesday, April 18, 2018

Eric See-To must advocate to abolish GST for procurements and service provided by both state and local governments

Media statement by incumbent DAP ADUN for Kampung Tunku Lau Weng San on 18th April 2018 in Petaling Jaya:

Since BN strategic communications deputy director Eric See-To has the cheek to claim that it is senseless for the Federal Government to collect Goods and Services Tax (GST) on the East Coast Rail Link (ECRL) project, as the government would have to pay GST back to itself, then he should also advocate for the Federal Government to abolish or waive GST on all procurements related and services provided by all thirteen state governments and hundreds of local governments in Malaysia.

This is even more pertinent and relevant when local councils in Selangor particularly, have been faithfully and diligently paying their fair share of their GST, only to find themselves dwelling into another yet long waiting list for their refunds, something that unnecessarily affects the operation of local councils in Malaysia.

A question by DAP ADUN for Balakong Eddie Ng Tien Chee on 9th November 2017 in the Selangor State Legislative Assembly revealed that all local councils in Selangor paid more than RM6.16 million as GST output taxes to the Inland Revenue Board (IRB) from 1st April 2014 till July 2017.

However, the amount of GST waiting to be refunded by IRB to all 12 local councils in Selangor amounts to more than RM36 million within the same period. While we are not supplied with the latest information as of today, but such a RM30 million “deficit”, which is wholly unnecessary and manmade in nature, is certainly the last thing any government on earth will desire.

This again proves the fact that the imposition of 6% GST on state and local governments is a burden that affects every resident even at the grassroots level. In other words, we wonder why the special treatment to CCCC (China Communications Construction Sdn Bhd) when evenry single Malaysians would will have to pay GST for car parking or renting halls.

If Eric See-To sees no problem in the Federal Government waiving CCCC from paying their due of GST to the IRB in constructing ECRL, certainly he should also see the same logic in the case of services provided by local and state government to the people. Perhaps he may consider to relinquish his position should he unable to reply to this question.

Lau Weng San
Incumbent ADUN Kampung Tunku

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