Local authorities in Penang will absorb the Goods and Services Tax (GST) imposed on 20 of its components of services.

Chief Minister Lim Guan Eng said that the absorption of GST was aimed at helping to reduce the burden of the people in this state.

"The Penang Island City Council (MBPP) and Seberang Perai Municipal Council (MPSP) will bear the GST," he said at a press conference here Monday.

Lim said among the 20 components of the local authorities' services were rents of public market stalls, rents of halls, leases of land, rents of buildings, payment for parking lots and cleaning services.