JOHOR BARU: The Johor government will absorb the Good and Services Tax (GST) imposed on services provided by the state's local councils. Johor Housing and Local Government Committee chairman Datuk Abdul Latif Bandi said these services include rentals for local council facilities and licences fees.
The decision to absorb the GST costs takes immediate effect. Latif said that with the move, the state government will absorb more than RM3 million in GST costs per year for its 16 local councils.
These costs would have to be paid to the Royal Malaysian Customs Department. Latif said this the state government has sought for a GST exemption for local council services from the Urban Wellbeing, Housing and Local Government Minister.
"The request have been made and conveyed to Urban Wellbeing, Housing and Local Government Minister Datuk Abd Ramlan Dahlan, and we were told that the matter will be brought up to the Cabinet," Latif said during the launch of the Johor Baru Central municipal council's 14th Karnival MPJBT held at Hutan Bandar Mutiara Rini today. He was responding to a call by the Sultan of Johor who had said on Thursday that the state government should seek for an exemption for GST charges that were imposed on the state's local council services.
"The Sultan of Johor Sultan Ibrahim Sultan Iskandar wants the GST exercise to be exempted from any services offered by the local council as the Tuanku felt it was something inconceivable to impose GST on government services which are considered as basic responsibilities to the people. He also wants the people not to be burden with such cost," he said
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