Selangor to request from Finance Ministry for GST exemption

SHAH ALAM: The Selangor government will request for Goods and Services Tax (GST) exemptions for its 12 local councils from the federal government, said Selangor Mentri Besar Azmin Ali.
"We will write a letter to the Finance Ministry to request for exemption for local councils. This move was decided in the Exco meeting. If the Ministry can give exemption to the public services sector, we can accept it," Azmin said today.
The decision was made two days after he confirmed that Selangor won't absorb the GST on services provided by the state's local councils in order not to contravene any laws and won't be following the path undertaken by Johor and Penang.
"We can't compare with Penang since they have only two local councils. In Selangor, we have 12 local councils and most of it are local councils with a big or considerable urban population.
"I have instructed the State Economic Planning Unit to study the amount the state government has to bear and other implications we have to face if we have to absorb GST," said Azmin.
On Monday, the Penang government had announced that the Penang Island City Council and Seberang Prai Municipal Council would absorb GST for rental and parking including charges for council-owned hawker stalls, land and premises.
It is estimated that Penang local councils would absorb around RM2.2 million from July 1 and the Penang government would bear RM21.5 million annually for the 6% tax.