Opposition fights for GST revenue to stay in Sabah

Opposition wants the GST revenue to stay in Sabah to replace the scrapped SST revenue that was retained by the state government.

KOTA KINABALU: The Opposition has warned the Sabah Assembly that the poverty level in the state, the second poorest in the Federation after Sarawak, was set to worsen following the introduction of the Goods and Services Tax (GST) on April 1. If the GST must be maintained, suggested Bingkor Assemblyman Jeffrey Kitingan, it should be replaced with a Sabah GST under the 1998 Sales Tax Enactment “so that the revenue stays within the state”.

The main theme of the Opposition on the GST was that it was Gigit Sampai Tulang (Bite to the Bone) and Golongan Susah Tertindas (Poor people being oppressed). They added that the people in Sabah and Sarawak were already burdened by the National Cabotage Policy which has seen higher prices in the Borneo states vis a vis the peninsula.

“An estimated RM1.2 billion would be collected by the Customs Department in Sabah this year,” said Jeffrey. “This money can go to the Sabah Government under Article 95B of the Federal Constitution and help alleviate some of the poverty in the state.”

Api Api Assemblywoman Christina Liew added that before the GST was imposed, revenue from the Sales and Service Tax (SST) went to the Sabah Government. “The GST collected by the Federal Government in Sabah should go to the state government since its SST revenue has been scrapped.”

Her comments were echoed by Inanam Assemblyman Dr. Roland Chia who cited the Malaysia Agreement 1963 which envisaged the Federation as an equal partnership of Sabah, Sarawak and the peninsula. Likas Assemblyman Junz Wong called for a grace period of one to two years following the imposition of the GST. “This would give businesses some time to adapt to the new taxation system.”

Opposition Leader and Klias Assemblyman Lajim Ukin made poverty the main theme of his debate on the GST. “The GST has contributed to a sudden hike in the prices of goods and services,” he said. “It will hit the poor particularly hard.”

He warned the ruling Barisan Nasional (BN) that GST would be a major issue come 2018 when the next General Election would be held. The Sabah Government, he alleged, had done nothing to protect the people from the imposition of the GST.

“If it claims that the GST is good for the people, let them explain now. In any case, the BN will face the consequences in 2018,” said Lajim. “I was once the Federal Deputy Transport Minister. Putrajaya has no intention to scrap the NCP.”

Pantai Manis Assemblyman Abdul Rahim Ismail, raising a point of order, cautioned the house that Lajim’s statement was malicious and made with intent to tarnish the good image of the ruling coalition.

Bongawan Assemblyman Mohamad Alamin also used a point of order to interrupt Lajim. He wanted him to withdraw his statement on the GST as it gave the impression that the Sabah and Federal Governments were “not sincere”.

Lajim, in rebuttal, said the Sabah and Federal Governments were “insincere” since so many promises had not been kept. “The NCP should be scrapped since it only benefits BN cronies,” said Lajim.

Sabah Deputy Speaker Johnson Tee asked Lajim to withdraw the term “BN cronies” on the grounds that it was specific and contained malicious intent. Lajim explained that he had no “bad intentions” and maintained that “BN cronies was a fact”.