`Guan Eng's view on GST a distortion'

Publication: NST

Date of publication: May 31, 2013

Section heading: Main Section

Page number: 020

GEORGE TOWN: The state Barisan Nasional has questioned Chief Minister Lim Guan Eng for his misleading statement on Goods and Services Tax (GST).

Bagan BN division secretary Tan Chuan Hong said yesterday that Lim should not be making any comments on the matter since the government had yet to announce details of the GST.

Lim should mind his words and not become an ignorant leader.

He should only comment after the details have been announced, he said in reference to Lim's recent statement that the proposed GST would burden the poor.

Lim had said that implementing a GST rate of seven per cent would only increase inflation while affecting the low-income group the most.

Tan said the GST was part of a reasonable and comprehensive tax structure in developed countries.

It also stimulated fair competition, he added.

With the 'spend more, pay more' tax principle, those who spend more will have to pay more taxes.

It does not affect the low-income group, he said, adding that Lim's statement that the poor would be burdened was misleading.

He said GST generally would not affect daily supplies and controlled items.

Tan said Lim was being irresponsible when commenting that everyone would be burdened by an extra RM1,000 a year when the GST was implemented.

Without the details, he has no basis to form such an opinion. His comment is not only causing panic but also worrying the public. He should be prudent with his words.