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Wednesday, April 18, 2018

GST double standards unfair to Malaysians



A poem in Malay has been disseminated widely through social media:
Pisang emas dibawa belayar,
Masak sebiji di atas peti,
Cukai GST rakyat kena bayar,
Syarikat China boleh dikecuali
Briefly, in my own words, it means that while Malaysian citizens of all races, religions and social backgrounds have to pay goods and services tax (GST), a Chinese corporation gets to enjoy zero GST.
This really puts me off, not because I do not agree to the Customs Department granting the China Communications Construction Company (CCCC) relief from paying GST.
It is because a lot of news that we read from the day that Prime Minister Najib Abdul Razak returned home with the big news about “investment” from China till now does not appear to add up. For example, was it an investment or a soft loan?
No one heard anything about zero GST until Amanah vice-president, Husam Musa exposed it. And all that we learn from Customs director-general Subromaniam Tholasy was that this is a government-to-government project, while BN strategic communications deputy director Eric See-To merely explains that it was to avoid the government paying itself GST.
Bear in mind that See-To may not even be privy to the agreement with CCCC, yet he could come out with such an explanation. My question to him would be: Had the tender not been called earlier and was the price not already agreed?
If the company has to pay GST like any other local contractors handling government jobs, then would it help to reduce the construction cost or merely impact on the company’s profit margin, given that they are now enjoying the zero GST?
Even if Subromaniam’s explanation can be accepted, why are local contractors on government jobs not given the same privileges so that implementation cost can be reduced? See-To should also answer why then is the government collecting GST from itself.
This is the question that perhaps only those with full access to the agreement would be able to answer. I do not expect caretaker transport minister Liow Tiong Lai or any MCA man to be able to answer the questions raised by the public.
Therefore, I fully agree with Rosli Khan, a practising transport and logistics professional, academician, consultant and company director, that the people have the right to knowabout all rail project papers before we go to vote on May 9. I believe Najib has nothing to hide.
With the amount of GST money collected from CCCC, a lot could have been done to provide scholarships for the younger generation of Malaysians and perhaps, more facilities and financial aid could be provided for the disabled, single parents and others.
As pointed out by DAP's Kepong candidate Lim Lip Eng, “While a foreign-owned company is given zero GST status, why does the BN regime not take care of our own people first, by granting zero GST to those who are in any of the eight categories — the bankrupts, PTPTN loan defaulters, students, the disabled (OKU), minimum wage earners, single parents, senior citizens and retirees?”
I am speaking as a Chinese. But I am also a Malaysian Chinese, who believes in being a Malaysian first, whose loyalty and interests lie with the country.
While I welcome the participation of China in helping to develop this country, in much the same way that I welcome foreign investors from other nations, the special privileges given by the government should also be extended to locals.

STEPHEN NG is an ordinary citizen with an avid interest in following political developments in the country since 2008. - Mkini

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