Just slightly more than a month into the implementation of the Goods and Services Tax (GST), we now hear strong dissenting voices not only from Pakatan Rakyat but from other parties as well.
First on 16 April, the Mufti of Federal Territories Datuk Zulkifli Mohamad urged that Muslims who paid zakat be exempted from paying GST. He also asked for explanation on the collection GST and the distribution of its revenue. The Mufti also commented that the 6% rate should be reduced.
A week later, the Malaysian Islamic Development Department (JAKIM) said that it will consider the suggestion by the Mufti for zakat-paying Muslims to be exempted from GST.
Then, on 18 April, UMNO’s Member of Parliament for Sepanggar, Sabah, Datuk Jumat Idris complained about GST being a burden to the people just as he was charged with a hefty sum of RM1,200 as GST being paid for a medical treatment for his son.
On 25 April, less than a month after the implementation of GST, former Prime Minister Tun Dr. Mahathir Mohamad speaking at the Bicara Negarawan forum in Kuala Lumpur called for the GST to be canceled saying that it is a system where even government officers do not understand.
On 7 May at the opening of the Johor State Assembly, the Sultan of Johor criticised the collection of GST for local authority services saying that it “does not make sense”. He also directed the state government to seek exemption on GST from the federal government.
Following the Sultan’s criticism, two days later on 9 May, the Johor state government announced that it will absorb more than RM3 million in GST cost imposed on services by the state’s local authorities. Johor Housing and Local Government Committee chairman Datuk Abdul Latif Bandi also said that the Johor state government has sought a GST exemption from the Urban Wellbeing, Housing and Local Government Ministry and is awaiting the federal government’s decision.
On 11 May, the Menteri Besar of Terengganu Datuk Seri Ahmad Razif Abdul Rahman announced that the state government will absorb GST at the cost of RM1.6 million.
On the same day, Penang Chief Minister Lim Guan Eng also announced that both local authorities in Penang will absorb GST at the cost of about RM2.1 million to the state government. Penang has also written to the federal government to exempt the tax for local authorities.
I believe that more and more parties will emerge to express their dissatisfaction with GST, including those from Barisan Nasional. This is a vindication of Pakatan Rakyat which protested strongly against GST from the first day of its introduction way back in 2009.
The government claiming to have conducted a thorough study of GST is clearly a lie as it has not even consulted among its own ranks as evidenced by the protests heard so far.
GST has shown itself to be the most irresponsible policy implemented under the UMNO-Najib regime. Thus, until the suitable economic precondition is met, GST must be scrapped off immediately.