GEORGE TOWN: The Goods and Services Tax (GST) should not be imposed on public projects which are meant to benefit the people.
In making this call, Chief Minister Lim Guan Eng said if GST is imposed on public projects, it will increase the costs of infrastructure projects for the government.
"In principle, we are against the implementation of GST, but if they want to go ahead it should not be imposed on projects for public good," he said during a press conference at his office today.
Lim was referring to a tender for a road construction project in the state which had included a 6% GST.
He urged the federal government to explain why GST is also imposed on infrastructure projects.
"I do not understand why GST is imposed on it as this is not a profit oriented project, Putrajaya must explain if it is also subjecting infrastructure projects like this to GST", he said.
The detailed tender for the road construction project is to connect Jalan Bunga Hinai to Jalan Bunga Kaca Piring and the total cost of the project is RM2.3 million including 6% GST amounting to RM112,680.
On a separate matter, Lim wants Deputy Health Minister Datuk Seri Dr Hilmi Yahya to clarify the announcement of a new transportation system called Balik Pulau Express (BPE), during the launch of "IStay@BalikPulau" on Jan 17.
"How can a new transportation system which still has not received approval from the Road Transport Department (RTD) be announced by a deputy minister?
"We hope we can get a clarification from him," he said.
Lim added that his office has sent a letter to RTD asking about BPE on Jan 26 and on Feb 12 RTD replied that no application was made for it and neither was it given approval by the department.
BPE is a combination of a motorcycle and sidecar which is similar to Thailand's "tuk-tuk".