KUALA LUMPUR: Pandan MP Rafizi Ramli has threatened to hold a demonstration if the government proceeds to impose goods and services tax (GST) on water supply meant for the poor effective this month.
“If I do not get any response to my calls soon, I will organise a demonstration against GST which is being imposed on water supply channelled to flats, welfare homes and others beginning in Pandan which has many flats,” said the PKR vice president and secretary general in a statement.
The demonstration would take place if Prime Minister Najib Razak, who is also finance minister, does not accede to Rafizi’s two demands.
“I demand for an order to cancel the directive of collecting GST for water supply to homes and facilities of the poor.
“I am also urging Najib to immediately stop whatever travels using private jets, helicopters or any other air travel facilities specially for him, his wife and his ministers.”
He is also requesting Najib to confirm that water supply to apartments, places of worship, welfare homes and water supply and connection services would be taxed under GST effective from Sept 1.
Rafizi said this in the wake of a letter dated Sept 13 from the Sabah Water Department addressed to water engineers at division level on the implementation of GST on treated water and water supply services.
He hit out at the government for implementing GST on water supply silently without informing the people. He added that the action was unjustified as it targeted taxes from the poor and less fortunate.
“I want to remind that the government is not collecting taxes from deals worth billions of ringgit involving the rich which is the profit from shares because we do not have capital gains tax.
“That is why the move to collect from flats, mosques, welfare homes and water reconnection and supply services are not acceptable.”
Rafizi also said that he was aware of Najib’s concerns since the Treasury was having shortage of funds because the GST collection for the second quarter dropped by 30%.
“My friends from Pakatan Harapan and I have already warned since 2010 that GST would stall public expenditure which would impact on the nation’s economic growth and government ability to collect taxes for government expenditure.”
- This article first appeared in BeritaDaily.com