Guan Eng claims BN gov't 'robbed' from GST refunds

PARLIAMENT | Finance Minister Lim Guan Eng has claimed that GST refunds were delayed for up to two years because the former BN administration "robbed" from the refunds.

"What was supposed to be paid in two weeks was not paid for two years, because the money which was paid as an advance was not put into a trust fund, but into a consolidated fund as revenue. Because it was taken as revenue, it was used by the former government.

"I want to say here, it was not robbing GST, but robbing from GST refunds," Lim thundered in the Dewan Rakyat today in the winding-up debate on the Sales Tax Bill 2018.

"This is a serious robbery, where money which was supposed to be in trust funds was not in those funds. 

"How can the government now pay those refunds when the money is not there?" he asked the Dewan.

Lim had said earlier this month that the delay in GST refunds had affected the cash flow of many businesses, leaving them with little choice but to increase their prices to compensate.

'Where's the evidence?'

Khairy Jamaluddin (BN-Rembau) had earlier insisted that the Pakatan Harapan administration could achieve its desired outcome by improving the GST system, instead of replacing it with Sales and Services Tax (SST).

Lim then asked Khairy whether he knew the reason behind the delayed GST refunds, to which the former youth and sports minister replied that it was due to customs disputes.

"Is that the reason you have been given? I am surprised by the excuse given by Rembau, if you do not understand why the GST refunds were not given back," Lim said. 

Khairy then urged the finance minister to produce evidence of the alleged "robbery."

Lim said in response that he would show the Dewan the proof when tabling the motion to repeal the GST tomorrow.

After the Sales Tax Bill 2018 passed its second reading, Ronald Kiandee (BN-Beluran) raised a motion to move the bill to a select committee.

The motion was rejected after bloc voting, with 111 votes against and 51 votes for the motion, while four abstained.

Following the vote, the third reading of the bill was passed without debate.

The Sales Tax Bill 2018 will now go to the Dewan Negara, where senators will vote on it.

Besides the GST (Repeal) Bill 2018, Lim is also expected to table the Service Tax Bill 2018 tomorrow. -Mkini