Possible GST exemption for local councils in Selangor

SHAH ALAM: Selangor residents using local government facilities and services are expected to be spared paying the Goods and Services Tax (GST) if the Federal Government agrees to give an exemption to all local authorities.

Mentri Besar Azmin Ali said the state government would write to the Finance Ministry seeking GST exemption for the state’s 12 local councils.

“If it is given consideration, we can start streamlining. At the same time, the state Economic Planning Unit has also been directed to carry out a study on the financial implications if the state were to absorb GST,” he said.

Azmin, who spoke to reporters after launching the review of a book about Khalifah Umar Abdul Aziz, said that unlike Penang, which has only two local councils, Selangor has 12.

The Penang state government has promised that its local councils will absorb the GST and not transfer it to the people.Selangor is a developed state and most of the local councils are in the urban areas and because of this, a study on the financial implications to the state must be carried out before a decision is made, Azmin said.

Apart from Penang, the Terengganu and Johor state governments will also absorb the GST related to local government facilities and services.

On another matter, Azmin said he had received a short message service from the Federal Government regarding the meeting with Energy, Green Technology and Water minister Datuk Seri Dr Maximus Ongkili.

“The meeting with the minister will be held in the next few days and I have prepared some things to discuss with him,” he added.

He reiterated that the state government had agreed in principle to the construction of the Langat 2 water treatment plant.

“But as mentioned, the application will be reviewed by the local authorities and they have to comply with all the conditions set by the councils and we will give the approval,” said Azmin adding that the state needed Langat 2.

- The Star
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