Datuk Abdul Karim Rahman Hamzah
KUCHING: Assistant Minister of Housing Datuk Abdul Karim Rahman Hamzah welcomes the move by the state government to absorb the goods and services tax (GST) imposed for services provided by local authorities.
He said although he was unsure on which services that it was referring to, he hoped that the federal government could see such move by several states in ‘exempting’ services provided by state councils from GST.
“As it is, the local councils are seen by the people as an extension of the government and their responsibility is to provide good services. If (absorption of) this council’s services tax could reduce the people’s burden, then I would welcome it.
“We do not want the added burden (coming) from government agencies, which include local councils,” Abdul Karim, who is also Assistant Minister of Youth Development, told The Borneo Post when contacted yesterday.
For the record, Sarawak has 26 local councils, divided into northern, southern and central regions under the purview of the Local Government and Community Development Ministry.
The latest announcement by Chief Minister Datuk Patinggi Tan Sri Adenan Satem hints that Sarawak would soon join Johor, Terengganu and Penang in absorbing the GST for services rendered by local councils, while Selangor is still seeking exemption from the Finance Ministry.
On another note, Abdul Karim – who is also Asajaya assemblyman – believed that the government, through the Domestic Trade, Cooperatives and Consumerism Ministry and Customs Department, must come down hard on traders who were taking advantage of the GST by unnecessarily increasing prices of items.
“Owners of sundry shops and those far from the bigger towns are the main culprits. The victims are always the poor ‘kampung’ (village) folk. These unscrupulous traders must be booked.”