Press Statement By Penang Chief Minister Lim Guan Eng In Komtar, George Town On 12.5.2015.
Unlike Terengganu Which Will Only Be Bearing The People’s Burden of GST For One Year, Majlis Bandaraya Pulau Pinang(MBPP) And Majlis Perbandaran Seberang Perai(MPSP) Will Bear The People’s Goods & Services Tax (GST) Burden Annually, GST Remittances Of RM15.631 Million And RM5.83 Million Respectively.
The Penang state government welcomes the Terengganu state government for following what Penang and Johor has done in exempting the payment of GST for local government services to the rakyat, even though Terengganu Mentri Besar Datuk Seri Ahmad Razif Abdul Rahman said it is only for this year. Unlike Terengganu, which will only be bearing the people’s burden of GST for one year, Majlis Bandaraya Pulau Pinang(MBPP) and Majlis Perbandaran Seberang Perai(MPSP) will bear the people’s GST burden annually, GST remittances of RM15.631 million and RM5.83 million respectively.
The injustice of the GST is so high-handed and extensive, that even government services and development projects like building roads, drains, markets and public halls for the benefit of the rakyat and not for profit, are subjected to GST. That is why when Johor announced that they will absorb the GST of local government’s services and apply for exemption from the Finance Ministry, this is an act of protest and opposition to the GST as well as strengthen their appeal for exemptions.
Before Johor made the announcement, only Penang had objected to government services being subjected to GST. I had written to the Prime Minister on 4th March 2015 for an exemption for GST, without getting any reply.
The total annual GST payment of RM20.5 million is a huge sum for both MBPP and MPSP, but bearing the GST burden is necessary to show solidarity with states that are willing to take this drastic step to demonstrate strong opposition to GST. MBPP and MPSP will have to pay directly RM14.4 million and RM5 million as output tax for carrying out public works and development projects. This RM 19.9 million in output tax will be paid direct to the Customs Department.
Furthermore, both MBPP and MPSP will have to collect from the public RM1.23 million and RM863,000 for using government services as input tax for GST, which will then be remitted to the Customs Department. It is this RM 2 million input tax that is supposed to be paid directly by the public that the rakyat will save. However the public also have to indirectly pay RM19.9 million of GST in output tax paid by MBPP and MPSP because this RM19.9 million GST paid means RM19.9 million less to spend on the rakyat.
I fail to understand why Penang BN Chair Teng Chang Yeow and his pro-GST gang continues to harp that the Penang state government’s operating budget is not subjected to GST, when both Johor and now Terengganu has proved him to be lying. Teng has now tried to cover his first lie with another lie by stating that I do not know that Penang operating budget of RM 100.25 million such as salaries and pension payments were actually tax-exempted.
Penang state government’s operating budget 2015 is RM887.24 million, not RM100.25 million as claimed by Teng. Further, not only salaries and pension payments(not subjected to GST) are included in the operating budget, but also administration costs and supplies, which are subjected to GST.
I do not wish to waste any more time with a person like Teng, who is only good at making despicable personal attacks to run away from addressing the people’s issues. GST has caused financial hardship, forcing many traditional businesses like sundry shops, hardware shops and traditional Chinese medicine shop to close down. There was even a businessman in Telok Intan who attempted suicide because of GST. Can Teng answer why he supports instead of opposing the GST and what has he done to oppose lessen the burden of the people caused the GST?
LIM GUAN ENG
槟岛市政厅及威省市政局每年需缴交的总额2050万令吉消费税，是一个沉重的负担。但是负起这重担是有必要的，以展现我们声援那些愿意采取如此剧烈方式以表达反对消费税意愿的州属。槟岛市政府厅及威省市政局依然需要分别缴交 1440万令吉及500万令吉的进项及销项税（Input & Output tax)所需缴付的消费税，以进行公共工程及各项发展计划。这1990万令吉销项税将进接上缴给关税局。