See Chee How
KUCHING: PKR Sarawak hoped Datuk Patinggi Tan Sri Adenan Satem will not stop at merely getting local councils in the state to absorb the goods and services tax (GST) imposed for their services.
Its state vice-chairman See Chee How, while welcoming the chief minister’s announcement yesterday that local councils would absorb GST for their services, said Adenan should take a step further by ensuring that other state departments and authorities do not impose GST on their services as listed under Part III of the Tenth Schedule of the Federal Constitution.
“The state government can decide not to levy taxes on the fees, levies, charges and other services of revenue as specified in Part III of the Tenth Schedule of the Federal Constitution, which substantially are proceeds collected, levied or raised within the state, including services provided by local councils.
“At the same time, the chief minister must seek GST exemptions on public services that otherwise are provided by the state but are now provided by statutory bodies, state-owned companies or private companies. “These include water supply by state-owned departments and authorities, the power and electricity supply by Sarawak Energy Berhad and the car parking charges,” said See when contacted yesterday.
At the ceremony to mark the abolition of Lanang Bridge toll in Sibu yesterday, Adenan announced that the state government would absorb GST imposed on services provided by local authority in the state.
“With respect, the chief minister cannot abolish the GST enforced on April 1 this year.
“However, he can decide not to levy GST on the services provided by local councils, seek exemptions or absorb the taxes on proceeds collected, levied or raised within the state in accordance with the constitutional provisions.”
See said Sarawakian households, commercial and industrial users were now finding GST levies on their water bills and electricity bills, and the public were paying GST on their parking coupons and tickets.
“If the service providers are local authorities and government departments, the state can similarly decide not to levy GST, but as these services are now provided by incorporated bodies and companies, the GST is levied on their proceeds and the levies go to the federal treasury.
“To ensure that the interest of the state is protected and that the people are not unduly burdened by the imposition of GST on the provision of these public services, the chief minister can and should seek GST exemption on the revenue from these public services.”