: The Terengganu government has taken the initiative to absorb the Goods and Services Tax (GST) imposed on services provided by the state's local authorities to alleviate the burden of the people.
Menteri Besar Datuk Seri Ahmad Razif Abdul Rahman said the GST absorption of RM1.6 million took effect immediately.
"This is not due to public complaints, but instead a move to ensure that the local authorities will not impose the GST on their services for the people.
"This matter was agreed to by the state executive council in its meeting on April 22, in which they also decided to absorb the GST on nine major components under the local authorities," he said in a statement here today.
The nine components were rents of Kuala Terengganu City Council's building and premises, rents of markets, leases of land, leases of markets, leases of parking lots, rents of sport facilities, rents of ornamental equipment, rents of vehicles and machineries, and sales of forms, plans and documents.
Ahmad Razif said certain local authorities, such as in Kemaman, would also absorb the GST imposed on the sales of tickets and souvenirs at recreational parks and mini zoo, as well as on maintenance services.
This made Terengganu the second state to have absorbed the GST after Johor.
For those who had paid the GST, the financial division of each local authority will return the money to them.