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.

"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.