Selangor rejects GST, says Azmin

SHAH ALAM: The Selangor government has rejected the implementation of the Goods and Services Tax (GST), saying it does not benefit the masses.

Mentri Besar Azmin Ali (pic) said Selangor rejected GST as it was unfair to the low and middle income groups.

“Only 10% of the population are paying taxes and the remaining 90% do not pay taxes because they are outside the income tax bracket,” Azmin said in the state assembly in reply to a question from Datuk Amiruddin Setro (Jeram-BN).

With GST, he said the 90% who had not been in the income tax bracket were forced to pay taxes.

On the 162 countries that had implemented GST, Azmin said they had initiated measures to start the tax low.

“Singapore, for example, started the GST at 3% and also reduced the quantum of the income tax.

“But here, the GST has been started at 6% and the income tax has not been reduced,” he added.

He said the Malaysian GST was very regressive as those already paying taxes were not that affected but those who had never paid taxes before were facing the brunt of the new tax system.

He also said it was ironic that lobsters were not imposed with GST but instant noodles were.

Gourmet food such as lobsters and oysters are exempted from GST.

Since GST comes under federal jurisdiction, the state has no say on the matter. However, most of a state’s procurements are out of the GST scope.