Schools should seek GST exemption for repairs,
says Guan Eng
Schools should seek exemption from the goods and
services tax (GST) for their projects, including repairs
and upgrades, Penang Chief Minister Lim Guan Eng said.
He urged schools in the state and nationwide to send a
joint memorandum to the Finance Ministry to get their
projects exempted from the GST, as all projects to
undertake repairs and upgrades would be subjected to the
6% consumption tax, which kicked off on Wednesday.
Lim said it was illogical for schools to pay GST on such
projects, which were important for education and were
not for profit-making.
"I call on schools to sign this memorandum to ask the
federal government to waive the GST on the expenses
schools have to pay to make necessary repairs and
upgrades. |
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"Funds for such matters are insufficient at times and
they are now diminishing because of the GST," he said at
a ceremony in Komtar today, where he presented mock
cheques to mission schools in Penang.
Lim said education was an area that needed attention to
build human talent for future development.
Schools, he said, should be able to make the necessary
upgrades and repairs to make their environment more
conducive for teaching and learning without being
subjected to GST.
"It is illogical for schools
to be subjected to GST when they pay for such projects."
At the ceremony, 20 mission schools received RM1.175
million from the state government. Of the amount, 37% is
for the upgrading of classrooms, sports and canteen
facilities; 21% for repairs like rewiring, 14% for
toilet and drainage upgrades, and the rest for
renovations, beautification and the installation of new
doors and fences.
Penang exco Chong Eng, who chairs the Penang Chinese and
Mission Schools Affairs Coordinating Committee, said the
state would also form a technical committee to help
schools identify urgent upgrading and repair works.
She said there were cases of schools spending funds on
other matters instead of repairs and upgrades, which
were more important.
"If the schools are not
sure what they need to do first with the funds, they can
consult the technical committee for advice.
"School managements also need to learn about building
and construction to help them make the necessary
assessment and decision." – April 3, 2015.
Source:
The Malaysian Insider
, dated
03/04/2015 |