The Penang state government pays RM20 million annually to the federal government when the two local councils of Majlis Bandaraya Pulau Pinang(MBPP) and Majlis Perbandaran Seberang Perai(MPSP) absorbs cost of GST on the people’s behalf. On my last day before being forced by Sarawak Chief Minister Tan Sri Adenan Satem to leave, I am shocked that Tan Sri Adenan has issued a wild and baseless challenge to me to abolish GST in Penang to prove my claims that DAP would abolish GST in Sarawak if DAP wins in the Sarawak elections on 7 May 2016.
I have never made such a claim on behalf of the DAP. I wish to challenge Tan Sri Adenan to show proof that I had ever said that DAP would abolish GST in Sarawak if we win the Sarawak state elections. If he can not show proof, Tan Sri Adenan has shown that he is not trustworthy, when he is willing to abuse his powers to prevent opposition leaders from Peninsular Malaysia to enter Sarawak and is now making false claims.
I had never said that DAP would abolish GST in Sarawak if DAP wins the state elections, but that we should punish BN and Tan Sri Adenan for allowing GST to be implemented and bring hardship to the people. GST is so cruel by taxing poor people together with the rich, but even state governments and local councils have to pay GST for road and public work projects.
GST is a federal law and can only be abolished by Parliament not state governments. However Tan Sri Adenan must bear full responsibility for the implementation of GST in Sarawak because not only did he support it but his 25 BN Sarawak MPs also voted in support of the GST law in Parliament.
Even though state governments can not abolish GST, Penang has tried to reduce the burden of the people enjoying local council services such as parking and rental of public halls by paying GST on their behalf. This has caused our two local councils MBPP and MPSP to come out with an extra RM20 million annually in making GST payments to the Federal government. Such payments contribute towards the RM39 billion of GST payments collected annually by the Federal government that saved the Federal government from bankruptcy as a result of BN’s failed policies, misrule and mismanagement as well as the various financial scandals such as the RM50 billion 1MDB scandal.
In other words, the people would normally have to pay GST for car parking or renting halls. Instead this GST cost is borne by the local councils, costing the local councils or the state government RM20 million per year, that will be benefited by the Federal government. Instead of working together with the Penang or Selangor state governments to oppose the implementation of GST on government services and public projects like roads and drains, I regret that Tan Sri Adenan continues to support the GST.