Guan Eng's statement on GST very misleading

GEORGE TOWN, 31 May 2013 : Barisan Nasional Bagan Division Secretary cum Certified RFP Trainer, Tan Chuan Hong bombarded Penang Chief Minister Lim Guan Eng on misleading the masses with Goods and Services Tax (GST) issue, because the Government has yet announced the GST details. Therefore, he should mind his words and deeds so as not to become an ignorant leader. He should only comment after the details have been announced.

Chuan Hong said, in developed countries, GST is part of a reasonable and comprehensive tax structure. Besides avoiding merchant involved in tax evasion, it also stimulates a fair competition platform in a nation. In addition, with the “spend more pay more” tax principles, those who spend more will have to pay more taxes. It does not affect the low-income groups.

Generally, GST will not impact daily supplies and controlled items. For instance, no tax imposed on a cup of coffee if one drinks in an ordinary coffee shop. If one drinks at premium brand stores, one will have to pay the tax. It was misleading the masses when Penang Chief Minister Lim Guan Eng claimed that buying underwear would have to pay tax. This is because buying ordinary underwear will not be affected by the tax. However, if buying underwear at premium brand stores, one will need to pay tax.

He made a proclamation and said that Penang Chief Minister Lim Guan Eng possessed an Accountancy qualification, and is a leader, too, should have knowledge in taxation. It was irresponsible and misleading when Lim commented that everyone had to bear RM1000. Without the tax details, what basis he has for making this conclusion? His comment is not only causing panic, but also worries to the public.

He said, the RM500 BR1M for the low-income groups is meant for those who have lower income or who are senior citizens. Anyone is entitled as long as one is qualified. This is different from the Penang Government where the PAKATAN RAKYAT Government only pays RM100 to benefit Penang voters, not Penang peoples and this clearly shows that it is Money Politic.

“In addition, GST virtually helps promoting tourism industry. It even pushes the nation’s shopping paradise to its summit. Tourists will get tax rebates after their purchases. This will boost tourism, and in turn benefiting the development of other industries including hotels, food and beverage industries.”

In this regard, he hopes that Lim Guan Eng as the Penang Chief Minister should be prudent in his words and deeds to avoid causing panic and worries to the public.