GEORGE TOWN, Jun 21 – The recently cancelled the proposals for the implementation of the goods and services tax (GST) on some 60 food items will make a comeback after the next general election, said Penang Chief Minister Lim Guan Eng in a press conference here today.
the sudden U-turn on the tax on the 60 items was not because of the people’s hardship, but was due to the looming general election. The Customs Department recently reversed an order to impose the GST on another 60 food items, including seafood, vegetables, fruits, tea, coffee, spices and noodles.
It was supposed to take off on July 1. Customs director-general Subromaniam Tholasy said the decision was made after discussions with the finance ministry. Lim said the cancellation of the GST order meant the decision on the 60 items was already made beforehand. He said an order can only be “cancelled” if it was signed and gazetted by the federal minister in charge.
“I believe that if they (BN) win GE14 later, this GST will be re-implemented because everything has been signed and gazette by the minister. If the food items was not approved and gazetted first, why should it be cancelled? It’s mean that the Federal Government is intending to extend the implementation of the GST and has already approved it.
“Therefore, they must be cancelled this due to the general election. If they win, they will confirm all 60 food items will ‘kena’ (be imposed) GST again. If it (BN) loses, GST will be abolished by the Pakatan Harapan government,” Lim said at a press conference in Komtar today.
Other items that would have been subject to the 6% GST included bee hoon, koay teow, laksa mee, coconut oil, eel and swordfish, as well as imported fruits like avocados, figs, grapes, nectarines, cherries and berries. Under the category of vegetables, potatoes, long beans, peas, spinach and sweet corn would reportedly be taken off the GST zero-rated list. The government introduced the GST in April 2015 in the form of a 6% tax on goods and services. — PN
