KUALA LUMPUR: A dried dates distributor is suing to remove the Goods and Services Tax (GST) levied on the fruit and other essential goods and services. This was revealed by counsel Datuk Abu Backer Sidek Mohamad Zan during case management of the legal action by plaintiff Asia Kitchen Industries Sdn Bhd at the High Court Registry today. Abu Backer is acting for the company – which filed the suit against two defendants, the Royal Customs of Malaysia and the Finance Ministry – on June 17. According to a copy of the Statement of Claim made available today, Asia Kitchen Industries claimed that the general prices of goods and services had risen since implementation of the GST on April 1 last year, despite the two defendants’ promises to the contrary. The company referred to the Department of Statistics releasing a January 2016 Consumer Price Index(CPI) which showed an increase of 3.5 per cent compared to the same month last year. Asia Kitchen Industries – which imports dried dates from Saudi Arabia and then processes and distributes the fruit here – claimed it was adversely affected by the 6 percent GST imposed on dried dates.
The company also alleged that the imposition of GST on dried dates had prejudiced consumers and negatively impacted the dried dates market here as the fruit are religiously-significant for Muslims especially in the month of Ramadan. Asia Kitchen Industries seeks court orders to exempt essential products and services from GST, to amend the GST List of Fruits and Vegetables to put dried dates in the same category as wet dates, which are exempt from GST. The company also seek any other relief deemed fit by the court. Abu Backer claimed the two defendants had not sent any legal representatives for today’s case management despite copies of the suit having been served on them on 18 July. He said the High Court set Aug 3 for case management.
