Zero-rating GST is the same as abolishing it, says Guan Eng


GEORGE TOWN: Zero-rating the Goods and Services Tax (GST) is the same as abolishing it, said Penang Chief Minister Lim Guan Eng.

He said it has always been Pakatan Harapan's emphasis to do away with the GST.

"We have said it repeatedly. We don't understand why Barisan Nasional finds it hard to understand mathematics. Don't tell me they don't understand what is zero, nought.

"PKR vice-president Nurul Izzah Anwar had said the GST would be zero-rated. Zero-rated means no GST.

"That has been our stand all along," he told newsmen here today.

Asked if the existing mechanism remains, the DAP secretary-general said:

"The most important thing is we want to abolish the GST. We want to make sure no GST is collected.

"Of course there is talk whether it can be implemented because (talk of) implementation is more important.

"Our way out because of the existing system put in place is to abolish is to put it zero-rated," he said.

Pakatan Harapan has come under fire after Nurul Izzah told a ceramah on Sunday night

that should the opposition come into power after the 14th general election, they would not continue with the current high charge.

Speaking at a press conference after the ceramah, Nurul Izzah said Pakatan Harapan had decided on the matter when they came out with their alternative budget.

"Zero-rated was the term we had used.

"Of course you have to also understand that a mechanism has been put in place. In terms of our position, it is similar and we also have to adjust with the mechanism which has been implemented.

"We are doing something pragmatic in line with our pledges, not commerce," she added.

The GST, which took effect on April 1, 2015, is currently fixed at six per cent. It replaced the Sales and Services Tax (SST) of up to 10 per cent.