Customs cancels GST plan on 60 food items
Published on: Tuesday, June 20, 2017
Kuala Lumpur: The authorities have cancelled plans to impose the Goods and Services Tax (GST) on more than 60 food items, which was supposed to have come into effect on July 1.In a statement today, Customs director-general Datuk Subromaniam Tholasy said the decision was made after the matter was referred to the Finance Ministry.The media had previously reported on several food items which were supposed to have been imposed with 6 per cent GST beginning July 1.ADVERTISEMENT Subromaniam said that under P.U. (A) 162 Goods and Services Tax (Zero Rated Supply) (Amendment) (No. 2) 2017, it would have led to GST being imposed on more than 60 food items."These included food items such as eel, swordfish, corn, frozen vegetables, imported fruits (avocados, apricots, grapes, cherries, peaches, plums and figs), margarine and several others."The Customs Department has referred the matter with the Finance Ministry for feedback. The decision (to impose GST on the items) have been cancelled," he said.ADVERTISEMENT Meanwhile, Sabah Parti Keadilan Rakyat (PKR) was stunned by the initial announcement of additional GST imposition. Its Chief Christina Liew said if so then the Government had clearly reneged on its earlier promise that the GST will not be imposed on food items so as not to burden the people.
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Liew, who is Api Api Assemblywoman, said any announcement would have been most unwarranted as Hari Raya Puasa is around the corner as if it is a "festive gift" for the people.Stay up-to-date by following Daily Express’s Telegram channel.
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"While it may be the Government's right to levy taxes, there must be consideration for the rakyat's economic hardship. It is shocking to learn that potatoes, long beans, peas, spinach and sweet corn will also be subjected to GST. "And contrary to what is thought, the eel is increasingly eaten, particularly by the Chinese community, for its health benefits."