Press Statement By Penang Chief Minister Lim Guan Eng In Komtar, George Town On 10.5.2015
BN Penang Chair Teng Chang Yeow and BN Penang should publicly apologise for lying that state government’s dervelopment projects and services are not subjected to the 6% Goods and Services Tax (GST). During the Perrmatang Pauh by-election, Teng had attacked me for making false claims in my statement that GST has resulted in the state government, local authorities and state agencies being forced to fork out a total of RM48 million – of which RM46.3 million is GST and the remaining RM1.7 million administrative costs incuured from collecting and paying the GST.
Teng claimed that the state government need not pay such a high GST. Teng and BN is clearly lying when the Johor Sultan expressed his displeasure that the public or the state government has to pay GST for government services and works provided to the public. Sultan Ibrahim Ibni Sultan Iskandar said it was not logical to impose GST because it was their duty to provide free services to the taxpayers and not fair for taxpayers to pay GST, because they are already being taxed for other products and services.
The Sultan directed the state government and local councils to seek exemption from the federal government for (GST) on their services to the public. The Penang state government had written to the Prime Minister Datuk Seri Najib Tun Razak seeking exemption from paying GST, as we are not business entities making a profit. It is ridiculous that state government building roads, drains, halls or works for public benefit has to pay 6% GST.
Unfortunately there is no reply from the Prime Minister. I had stressed that this imposition of 6% GST on state government is a huge burden that affects all 13 state governments in Malaysia. Instead Teng claimed that this is not the case and accused me of misrepresenting the situation. Now the Johor Mentri Besar Datuk Mohamed Khaled Nordin had announced that they were seeking exemption from the Customs Department and the Federal government.
By trying to win the Permatang Pauh by-election with such dirty tactics, it is clear that BN and UMNO have not only lost in the by-election but also lost their honour and dignity. It is fortunate that during the recent Permatang Pauh by-election, PKR’s Dato Seri Wan Azizah bin Wan Ismail won handsomely, proving that voters were not easily tricked by the deceit of BN and UMNO.
PKR’s Dato Seri Wan Azizah bin Wan Ismail would have won by a landslide victory that would easily double her majority of 8,841, if news of the fishy land deal between 1MDB and Lembaga Tabung Haji was exposed before the polling day. This land deal has greatly agitated Muslims who are unhappy how Lembaga Tabung Haji’s funds are being used for 1MDB.
LIM GUAN ENG