MB: Kedah farmers want to be exempted from GST

ALOR SETAR: The Kedah state government will forward the Kedah Farmers Organisation Authority’s (FOA) proposal to be exempted from paying the Goods and Services Tax (GST) to the federal government.

Menteri Besar Mukhriz Mahathir said the farmers had to pay RM41 million in GST, for example, for the use of vehicles, lorries and logistical services.

“This figure is shocking and this should not be the case. Many subsidies are given in the agricultural industry, specifically paddy, but nevertheless, it is still an important sector as it assures food supply,” he said after opening the 32nd annual-general meeting of the FOA here today.

He said the state allocated up to 240,000ha for paddy planting and dams although the area had the potential to give a more lucrative return.

“We cannot see the rationale of us contributing to ensure food supply if we have to pay GST. Our income is limited, no natural resources and substantially depending on agriculture,” he said.

The proposal for the exemption was made by the Kedah FOA’s chairman of the board of directors, Abd Lateh Md Saman in his speech, earlier