Poser over GST for water

Posted on 8 April 2014 - 08:22pm

Last updated on 8 April 2014 - 08:37pm

GEORGE TOWN: Penang is seeking clarification from the federal government on whether water is exempted from the goods and services tax (GST).

Chief Minister Lim Guan Eng said the law is not clear about the matter as some quarters claim that water is exempted.

He said his administration will pursue the matter with the federal government as there is no definite answer at present.

"To be frank, we will only know in April (next year, when the GST is implemented)," he said at a press conference today.

The uncertainty arose after the GST Bill was passed by Parliament on Monday evening.

The new tax will replace the current sales and services tax (SST) while Prime Minister Datuk Seri Najib Abdul Razak has reportedly said the GST rate will be set at 6%.

On whether the state will impose GST on water if it is not exempted, Lim said GST is required by federal law and is mandatory.