Opposition still divided over GST, says Najib

KUALA LUMPUR: The Goods and Services Tax (GST) should not be politicised as the broad-based tax has saved the country’s economy.

Without the RM41 billion collected this year, it would be difficult for the Federal Government to provide for the rakyat.

Prime Minister Datuk Seri Najib Razak said until today, the opposition seemed to be still divided over the GST system with some accepting GST based on zero-rate.

“Of late, there are also some who want to return to the sales and services tax,” said Najib.

He added that the GST implementation would be improved, effective April or October next year, and depending on the local authorities, their services would no longer be subjected to GST.

Najib said reading materials, comprising all types of magazines and comics, would also be zero-rated, effective Jan 1, to streamline the GST treatment.

He added that cruise operators were also given relief from paying GST on handling services provided by port operators effective Jan 1 next year to Dec 31, 2020.

“Construction of school buildings and houses of worship, funded through donations are given GST relief on condition construction contracts are signed on or after April 1 this year.”

He added that imports of oil and gas-related equipment under a lease agreement, supplied to customers in Malaysia by companies in designated areas, namely, Labuan, Langkawi and Tioman, would be given GST relief effective Jan 1.

“GST relief is also given to companies in the oil and gas industry involved in importing oil rigs or floating structures as well as for imports of big-ticket items, such as aircraft and ships, by airline and shipping companies registered in Malaysia.

Najib said the management and maintenance services of stratified residential buildings supplied by the Joint Management Body and management corporations would not be subjected to GST.

This treatment is expanded to cover the management and maintenance services provided by housing developers, effective next year.