Federal Government Wastes Again, Spends RM365 Million on GST Promotion

KUALA LUMPUR, 24 Mar: The government has spent RM365 million to promote the implementation of the Goods and Services Tax (GST) although its enforcement only begins on 1 April, 2015.

The cost involves explanation programmes to students in schools as well as Institutes of Higher Learning and villagers.

The expenses incurred is RM98 million for the GST computing system which has been developed by the the Royal Malaysian Customs Department for year 2013/2014.

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Apart from that, RM150 million in preparing subsidised accounting software for Small and Medium Enterprises (SMEs) is being developed by the Customs Department at a cost of RM12 million for the year 2014 and RM25 million for 2015.

Training grants to businesses managed by the Ministry of Finance, involving a cost of RM100 million, while RM17 million is being spent for publicity programmes through print and electronic media.

As of 28 February, 4,967 programmes have been executed and was attended by 271,288 people.

The Member of Parliament for Shah Alam, Khalid Samad, said that the government is using the people’s money to burden them.

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“They are focusing on advertising when implementing the GST. Many things are supposedly not subject to the GST. For example, this drug is good because you need not eat. Similarly, the GST is good because there is no need to pay more.

“The way they campaign is misleading. We have to accept the fact that the GST is being implemented by the Federal Government to collect income worth RM25 billion a year,” he said in a press conference at the Parliament Lobby today.

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