Customs DG: Malaysians, not China firms, benefit from GST relief

The decision to grant Chinese contractors of the East Coast Railway Link (ECRL) GST relief was made in the interests of Malaysians, said Customs Department director-general T Subromaniam.

He dismissed the contradicting claims as fake news, and questioned if certain quarters were deliberately attempting to confuse the people on this issue.

“I want to stress that people should not spread fake news about this tax relief given to the ECRL (construction) company.

“We have to remember the rakyat are the ones who will benefit from this, not a company from China. That's why we need to understand the mechanism of GST.

“However, when I look at social media, I am unsure if people understand the issue of tax or if they are trying to confuse the rakyat on purpose," he said. 

“(Because if we don’t exempt GST) then the cost of the project will increase, the government will need to borrow more money and this will add to the country's debts.

“Is this what these irresponsible people want?” he asked during a press conference in Putrajaya this afternoon.

Previously, Bumiputera contractors had cried foul over the GST relief, accusing the caretaker government of favouritism towards foreign firms.

Meanwhile, Subromaniam further clarified that ECRL was owned by a Malaysian company, which benefited most from the relief.“[...] We must remember that the project belongs to Malaysia. The real owner of the project is Malaysia Rail Link Sdn Bhd, a company owned by a government investment firm.

“A Malaysian company benefits, not a Chinese company,” he added.

[More to follow] - Mkini