Opposition confusing the people over ECRL GST relief, says Umno man

An Umno supreme council member has accused the opposition of attempting to confuse the people on the issue of a China-owned company involved in the construction of the East Coast Rail Link (ECRL) project, being granted a relief from paying the goods and services tax (GST).

In a statement, BN Sri Gading chief Abdul Aziz Kaprawi said the opposition had attempted to make it appear as if the government had granted the relief to a foreign company.

“As a result of what has been said, there is a segment of the people confused by allegations made by opposition leaders who were clearly stoking certain sentiments to trigger their anger.

“This irresponsible attitude of the opposition was only intended for their political interest, without taking into account the reason behind the approval of the GST relief,” said Aziz who is also the caretaker deputy transport minister.

Amanah vice-president Husam Musa had on Monday discloseddocuments which purportedly showed that China Communications Construction Company (CCCC), the contractor for the East Coast Rail Link (ECRL), was granted a relief from paying GST.

The very next day, Customs director-general Subromaniam Tholasy confirmed that Putrajaya granted CCCC a relief from paying the GST in its procurement for the massive rail project, as a method to reduce the cost of implementation.

‘GST relief for ECRL project’

Aziz, meanwhile, claimed that the GST relief was not granted to CCCC but rather on the approximately RM60 billion ECRL project as a whole.

“These are two different entities which must be differentiated,” said Aziz who further accused the opposition of trying to sabotage the ECRL project aimed to benefit millions of Malaysians.

Part of the documents released by Husam on Monday include a certificate of GST relief for the acquisition of goods and services for the ECRL project and issued in the name of China Communications Construction (ECRL) Sdn Bhd.

The certificate said the relief was granted under Section 56(3)(a) of Goods and Services Tax Act 2014 which concerns the finance minister's power to grant GST relief.

The certificate shown was also accompanied by a letter carrying the CCCC letterhead informing its supplier that it had been granted GST relief based on a letter by the Finance Ministry dated Feb 7 this year. - Mkini