'If Govt can't repay, people shouldn't pay' - Rafizi on GST

The Government should stop the Goods and Services Tax (GST) scheme until it can promise to repay traders and the public within the promised time frame.

Parti Keadilan Rakyat (PKR) vice-president, Mohd Rafizi Ramli said the Government not being able to comply with its own rules and regulations after six months of GST implementation was a huge fault which cannot be taken lightly.

"This matter of late repayment to traders has been raised before by traders themselves as well as various chambers of commerce. However, only yesterday did the Government confirm its late repayment to the traders," he told newsmen at the Parliament lobby today.

Yesterday, Deputy Finance Minister Datuk Chua Tee Yong affirmed that ever since GST was implemented, only 41 percent of repayment have been made within the lawful time frame – 14 days from the date of submission.

Mohd Rafizi said this means 59 percent of repayments were not made in accordance with the law.

"Fifty-nine percent of traders received their repayment late. This would've certainly affected their cash flow. When cash flow is compromised, it can directly increase their cost of business which will then cause a price hike in goods and services.

"I cannot accept the Deputy Finance Minister's excuse yesterday that delays in repayment are a norm in the early stages of GST implementation, because the people have been paying since April 1.

"The Government needs to play fair. Only when the Government can promise to repay the GST to the people in a timely manner, should the people pay for GST," he said.

Meanwhile, in a separate case, Mohd Rafizi wanted Majlis Amanah Rakyat (MARA) to immediately explain the action it has taken upon its officers who allegedly had a hand in the issue of land purchase in Australia.