How much GST forgone from CCCC deal, asks Husam

Amanah vice-president Husam Musa has urged Putrajaya to reveal the amount of GST collection forgone from relief granted to China Communications Construction Company (CCCC) till date.

In a statement today, he also urged Putrajaya to reveal the progress payments and the progress status of the East Coast Rail Link (ECRL), a project handled by the CCCC.

This was Husam's follow up question a day after furnishing documents to suggest that Putrajaya had already granted GST relief to CCCC.

The Customs Department confirmed that a certificate of relief had been issued to the CCCC on grounds that the project was of public interest and therefore the cost had to be reduced.

Commenting on the matter of public interest, Husam said that the "dragon country" appeared to have more rights in Malaysia than locals.

"The destitute pakcik and makcik in the villages are not applicable for 'GST relief', even though they have to raise a family.

"As a local, although they are poor, the BN government does not recognise their right for tax relief in the name of 'public interest'.

"A company from negara naga (dragon country) has more rights. I am asking (the abovementioned) questions on their behalf," said Husam, who is also the head of Kelantan Amanah.

The ECRL is an ambitious RM55 billion project that will link Kelantan by rail to Port Klang.

Eighty-five percent of the bill would be financed by the Export-Import Bank of China.

Repayment period starts on the seventh year over a period of 13 years, at an interest rate of 3.25 percent.

Experts, such as economist KS Jomo, said that the project could be unviable and future generations would have to bear the burden of subsidising it.

However, according to BN strategic communications team deputy head Eric See-To, CCCC was granted GST exemption to avoid inflating the borrowing cost and unnecessary procedures.

See-To said that ECRL was a government project and having CCCC pay GST was akin to the government paying the tax to itself. - Mkini