16. Syed Mokhtar

Story behind Syed Mokhtar’s ‘RM2.25 billion tax-exempt’ Bernas deal revealed, says PKR MP

 

Published: 15 June 2014

Ismail Sabri had revealed in Parliament last week that the duty on rice imported from 2008 to last year was waived, in a move alleged to benefit tycoon Syed Mokhtar Albukhary. - The Malaysian Insider pic, June 15, 2014.An innocuous written reply in Parliament has provided a peek into the cosy relationship between the Najib administration and Malaysia's best-known businessman, Tan Sri Syed Mokhtar Al-Bukhary.
The Parliament learnt that Putrajaya accepted a personal letter from the businessman as a guarantee he would look after the national interests of rice in Malaysia.
Putrajaya also waived RM2.25 billion worth of duty on rice imported between 2008 and 2013 by Bernas, according to PKR Alor Star MP Gooi Hsiao Leung.

Gooi said Agriculture and Agro-based Minister Datuk Seri Ismail Sabri Yaakob made this revelation in Parliament in a reply to his question last week. "The latest figures provided by the United States indicates that Malaysia's rice imports for this year will increase by 24% or 1.1 million tonnes."
"This means that tycoon Tan Sri Syed Mokhtar Al-Bukhary will continue to reap huge profits through his control of Bernas," Gooi said in a statement.
Padiberas Nasional Berhad (Bernas) holds the monopoly on rice imports and is exempt from paying import duty on rice.
Following a concession agreement signed with Putrajaya in 2011, Bernas extended its sole national importer status for rice until 2021.
Gooi said Bernas was a strategic national asset tasked with the responsibility of protecting the interests of rice farmers and consumers.
"It was a gross breach of public interest to have allowed Syed Mokhtar to delist Bernas based on a legally worthless private letter," he said, referring to a letter written by Syed Mokhtar, which was disclosed by Ismail in Parliament on March 23.
In the letter, Syed Mokhtar gave his personal undertaking that he would guarantee the national interests of rice in Malaysia.
In the relisting of Bernas, 10% shares of Bernas IPO will be allotted to Putrajaya for the National Farmers Association (Nafas) and the National Fisherman Association (Nekmat).
Syed Mokhtar also pledged annual contributions to the welfare programmes of Nafas and Nekmat for five years or until the relisting exercise of Bernas was completed.
Pouring cold water on Syed Mokhtar's undertakings, Gooi claimed the letter was not legally enforceable nor binding on Bernas.
"This is because Syed Mokhtar is not a party to the concession agreement signed between Bernas and Putrajaya.
"The letter also does not state any deadline or time frame for the relisting of Bernas. So will it take five years? 10 years?" he said.
Gooi pointed out that with no definite date for relisting, Bernas would not be subject to public scrutiny or the supervision of Bursa Malaysia.
"Putrajaya's actions in the way they have allowed Bernas to be delisted is tantamount to unmatched cronyism," he claimed. – June 15, 2014.

 

15. 950 items

950 items under GST

Published on: Friday, August 15, 2014

Kota Kinabalu: The Consumer Price Index (CPI) in the country is expected to temporarily increase by 1.48 per cent of the inflation rate following the introduction of the Goods and Services Tax (GST) next year.
Deputy Finance Minister Datuk Ahmad Maslan said, however, the ministry projected that CPI will stabilise after a few months.
"This projection is based on our studies in other countries that have already implemented GST or Value Added Tax (VAT) as it is called in other countries. In countries like Canada, Singapore and Australia, CPI increased for the first quarter after it was introduced.
"But after it reached a certain level, CPI went down again," he said during a talk on GST at the Sabah Federal Civil Service Assembly, here, Thursday.
He also reiterated the fact that essential goods such as basic food, piped water and the first 200 units of electricity consumption to domestic consumers are zero-rated.
Other items which will be zero-rated under Malaysia's GST include sea produce, meat, poultry, education and healthcare.
"This is Malaysia-style GST. We do not want to burden the people," said Ahmad.
There are 950 items which will be taxed under the GST. The impact on prices will vary with some items will be cheaper, some will stay the same while others will be more expensive.
"For example, furniture. Actually, furniture prices will go down because right now, they are paying 10 per cent tax and after GST, they will only have to pay six per cent.
"But people are using GST to market their products. I have seen a big banner outside a furniture shop, 'Buy Now Before GST'. I told my men to ask the owner to take the banner down because it is a bad marketing and dishonest," he said.
The Government, through its agencies like the Customs Department and Ministry of Domestic Trade, Cooperatives and Consumerism (KPDNKK), will be monitoring the situation closely in the days following the implementation of GST and will arrest those who intentionally raised the prices of their goods without valid reasons.
Ahmad said the Government guaranteed that prices of items such as rice and sugar will not increase after GST and the number of enforcement officers in the Customs Department and KPDNKK will be increased to ensure anti-profiteering laws are followed.
He also addressed concerns by some quarters in Sabah and Sarawak who said that State governments will lose out in terms of monetary gains following the introduction of GST.
"I have been asked about this by policy makers from both states actually.
To clear up the matter, state governments can continue to collect taxes. In fact, there are only two taxes involved - the Crude Palm Oil (CPO) and entertainment duty.
"Even after GST is implemented, both of these taxes will be continued," he explained.
The Government, he added, will not delay in its plan to implement GST next year and advised the people to stop asking about postponing it.
"I know, the Government always give opportunities for the people when it comes to implementing any policy. We delay giving compounds, we extend the period for BR1M.
"But I assure you, the Government will not delay the implementation of GST which will be on April 1 next year," he warned.
Therefore, he continued, business owners who make RM500,000 or more in annual sales must register their companies before the deadline on Dec 31 this year or risk being compounded.
Registration can be made online and takes only a few minutes at the ministry's website at http://www.treasury.gov.my.
All the information, said Ahmad, can be found at the website and the government will not hesitate to fine those who failed to adhere to the laws.
"Ignorance cannot be an excuse. All information is at your fingertips.
If you said your company does not have Internet, I think that is too bad.
What kind of company do you have anyway?" he said.