Lift 6% tax on student PA insurance scheme, says Chong

PETALING JAYA: MCA Youth chief Datuk Chong Sin Woon decries the 6% service tax on Personal Accident Insurance for students, saying it further burdened their parents.

“I urge the Pakatan Harapan government to be considerate and exempt schools from paying a 6% service tax imposed on Personal Accident Insurance purchased for students,” Chong said in a statement yesterday.

Chong, who is also MCA Education Consultative Committee deputy chairman, questioned the Sales and Service Tax (SST) on insurance for schools while other schemes were exempted.

“I really do not see the need for collecting taxes from schools or stu dents,” he said.

The government, he said, should try to assist schools rather than impose a burden on parents and students.

“Since the Pakatan government has listed education, religious institutions and canteens under taxexempt categories, school insurance schemes for students should be spared the 6% service charge,” he said.

Chong also said the government should reconsider the announcement by Finance Minister Lim Guan Eng that the construction sector, gold jewellers and goldsmiths be taxexempt.

“It is necessary to reconsider these categories from SST as they are not necessities.

“But ironically, the Pakatan government will then apply a 6% service charge on a school insurance scheme,” he said.

Chong called on the government to waive the 10% sales tax on school shoes in line with Pakatan’s pledge to be a pragmatic, peopleoriented and compassionate government.