Don't be fooled by Guan Eng's GST statement - Teng

The DAP-led state government will not have to bear the cost of Goods and Services Tax (GST) as it is not imposed on administration expenditure, said state Barisan Nasional (BN) chairman, Teng Chang Yeow.

He said the statement made by Chief Minister, Lim Guan Eng was irresponsible and deliberately done to mislead the people when he claimed that the state government needed to bear RM46.25 million for GST this year.

Teng questioned the statement made by Lim on the estimated sum of RM6.01 million which had to be borne by the state government on administrative expenditure involving emoluments, pension payments and royal allocation.

"Don't mislead the people into believing...we know the GST is an issue. As a leader, instead of explaining to the people, you exaggerate further saying the state government needs to pay GST on emoluments, pensions and provision for the royalty," he told reporters here, Saturday.

Teng said the people should not be fooled by the chief minister's statement as GST was not charged on salary payment and the statement was made to confuse people who were still unclear on the tax system.

Teng however did not deny that GST would be charged on development spending but the state government could get a refund from the Royal Malaysian Customs once the projects were completed.