GEORGETOWN, May 11 – Penang Chief Minister Lim Guan Eng announced that Penang Island City Council (MBPP) and Seberang Prai Municipal Council (MPSP) will be absorbing the consumption tax beginning July 1 after discussing with members of the EXCO about the Johor government and local council absorb the GST.
“We have written a letter to the Prime Minister Datuk Seri Najib Tun Razak on the matter but there has not yet to reply. We will continues to write this matter to Putrajaya,” Penang Chief Minister Lim Guan Eng told a press conference at the state legislative assembly building today.
In the same time, State Government would continue to ask the Federal Government to exempt the tax from local councils such as MBPP and MPSP. CM Lim said MBPP would absorb around RM1.2 million while MPSP would absorb around RM863,000. Meanwhile, MBPP is estimated spending RM15.6 million on GST. If it does not absorb, it should be paid by the people of RM1.2 million output tax which the council only take in input tax service, supply and work expenses at RM14.4 million.
For the MPSP, the council spent approximately RM4.96 million for input tax. After it absorbs tax RM862.996.19 output tax, the council will pay RM5.82 million. Lastly, Penang ratepayers will not have to pay the goods and services tax (GST) to local councils for using services such as parking and rental for council-owned hawker stalls, halls, land, buildings and other facilities.