1MDB’s earnings exempted from GST

1mdb-gstPETALING JAYA: Embattled state investment fund 1MDB is not registered to pay the Goods and Services Tax (GST), as its income does not qualify as taxable supply, the Dewan Rakyat heard today.

Prime Minister Najib Razak, who is also the Finance Minister, said this in a written reply to Dr Ko Chung Sen (DAP-Kampar), who asked whether the company was registered to pay GST, how much sales was made by the company and how much in GST had been collected from it.

Ko also asked how much in GST was collected from the sale of Edra power assets to the Chinese, as well as the sale of Tun Razak Exchange (TRX) land to Tabung Haji.

Najib replied that GST was not applicable for both the transactions as well.

“The Share Sale and Purchase Agreement that 1MDB sealed with the China General Nuclear Power Corporation (CGN) to sell off its Edra power assets is exempted from GST.

“As for the TRX sale, the land is for the use of residential properties. Therefore, it is also GST exempted,” said Najib.