SERDANG: The Kedah state government will request for GST exemption for the agricultural sector, especially production of paddy, under Budget 2016.
Menteri Besar Datuk Seri Mukhriz Tun Dr Mahathir said the exemption would allow an estimated of RM41 million per annum payable to the federal government to be used to increase the competitiveness of farmers in food supply.
“We have made estimations...goods and services used by farmers for plowing, fertilising, harvesting and the use of machinery are included in the list of items that are subject to GST.
“I hope in the Budget 2016, this matter may be considered, as the exemption will help Kedah to contribute to food supply guarantee and alleviate their financial burden,” he told reporters at a Menteri Besar with Public University Students from Kedah event here today.
Mukhriz hoped that the suggestion would draw the attention of Prime Minister Datuk Seri Najib Tun Razak, and at the same time give relief to some 80,000 paddy farmers in the state. -- Bernama