KUCHING: The government has been asked to explain why luxury seafood items such as lobsters and oysters would be exempted from the Goods and Services Tax (GST), while ordinary food items such as canned sardines and instant noodles would not.
Parti Keadilan Rakyat (PKR) Wanita vice-president Voon Shiak Ni questioned the justification for the selection of the food items as the policy would cause the poor to further tighten their belts.
“Due to the rising costs, some of them may even have difficulty in getting proper meals each day,” she told press conference on Tuesday.
Among the items on the list of zero-rated supply items appended to Budget 2014 were frozen and fresh rock lobsters, crabs and Norway lobsters.
Live, fresh or chilled oysters, scallops, mussels, octopus, clams and snails were also on the list.
Zero-rated supply refers to items that are liable for GST, but are charged a nil rate at the point of purchase.
“The government said that the subsidies for the people are too costly but it is very unfair and unjustified to attribute federal debt to the subsidies for the people. The government should remember that it is their duty to take care of the people,” Voon added.
She said if the government is really serious about reducing its deficit, then it must tackle wastage, leakages and corruption in the country.
“Do not let the burden fall on the people. The government needs to know that more than half of the country’s population is still struggling to have proper meals each day. The poor parents are still struggling to provide basic needs for their children to go to school.”