KUALA LUMPUR, May 7 ― Johor ruler Sultan Ibrahim Sultan Iskandar criticised today the collection of the the Goods and Services Tax (GST) for local government services, saying the imposition of the taxation system for such a purpose “does not make sense.”
Sultan Ibrahim was quoted by news portal Malaysiakini as saying that the state should not collect GST for “government services” as it should be considered the state's responsibility to the public.
“I ask that the state and local governments not to impose GST on the services they render to the rakyat (people) and request for exemption from the federal government,” the state ruler was quoted saying in the news report as part of his opening address at the Johor state assembly.
“This does not make sense as government services are a basic responsibility to the rakyat and it is unreasonable that the rakyat should be further burdened with paying GST on them,” Sultan Ibrahim added.
The 6 per cent tax was only implemented on April 1 and the federal government had launched a drive to explain to people on the benefits of the tax.
Deputy finance minister Datuk Ahmad Maslan had been trying to explain the benefits of GST as opposed to the previous Sales and Services Tax (SST) system and that it has also reduced income tax rates for individuals and corporations.