Hottest Online News Portal

Ron95, Petrol, Diesel & LPG To Be Exempted From GST

in Top News

KUALA LUMPUR – The retail sale of RON95 petrol, diesel, and LPG be given relief from the payment of Goods and Services Tax (GST), to ensure the implementation of the new tax does not burden the rakyat.

Prime Minister Datuk Seri Najib Tun Razak said through this measure, consumers and targeted groups would not have to pay GST on the purchase of these items.

“The government also agreed that electricity consumption that is not subject to GST be increased from 200 units to 300 units.

“This will benefit 70 per cent of households,” he said when tabling the 2015 Budget themed, “People Economy” in the Dewan Rakyat today.

Najib, who is also Finance Minister, said with the implementation of GST on April 1, 2015, government revenue was estimated at RM23.2 billion.

“However, as a caring government, we have exempted several goods from GST  amounting to RM3.8 billion.

“With the implementation of GST, the Sales and Services Tax (SST) will be abolished resulting in revenue foregone of RM13.8 billion.

“This means that after deducting RM13.8 billion and RM3.8 billion from a revenue of RM23.2 billion, the government will have a balance of RM5.6 billion,” he added.

Hence, he said of the total, RM4.9 billion would be channelled back to the rakyat through assistance programmes such as the increase in 1Malaysia People’s Aid (BRIM).

Ultimately, he said net revenue collection from GST would only amount to RM690 million.

He said based on the feedback received from all segments of society, the government has agreed to widen the scope of items that would not be subjected to GST as follow:

i.    All types of fruits, whether local or imported
ii.    White bread and wholemeal bread
iii.    Coffee powder, tea dust and cocoa powder
iv.    Yellow mee, kuey teow, laksa dan meehon
v.    The National Essential Medicine covering almost 2,900 medicine brands.
These medicines are used to treat 30 types of diseases including heart failure,
diabetes, hypertension, cancer and fertility treatment
vi.    Reading materials such as children’s colouring book, exercise and
reference books, text books, dictionaries and religious book
vii.    Newspapers – BERNAMA


Latest from Top News

Go to Top