The government is considering the possibility of exempting the Goods and Services Tax (GST) from the purchase of RON 95 petrol and diesel, according to a Bernama report.
Deputy finance minister Datuk Seri Ahmad Maslan said that this is because at present, the two fuel commodities are exempt from sales tax at rates of 58.62 sen a litre and 40 sen a litre, respectively.
The subsidisation and sales tax-exemption of fuel is a huge cost to the government, he said, adding that the government has not officially decided yet if GST will be imposed on the purchase of fuel.
“(Translated) The government wants to see how much savings (can be obtained) from this move before making a subsidy rationalisation,” he said on Thursday.
Ahmad said that at present, RON 95 petrol is priced at RM2.10 a litre after a 71 sen government subsidy, and diesel at RM2.00 a litre after a 74 sen government subsidy.
He explained that the breakdown of total petroleum subsidies from 2000 to 2014 were 50% for petrol, 40% for diesel and 10% for liquefied petroleum gas (LPG).
The government paid RM3.425 billion in petroleum subsidies in 2000, RM2.398 billion in 2001, RM917 million in 2002, RM1.823 billion in 2003, RM4.788 billion in 2004, RM8.164 billion in 2005, RM7.281 billion in 2006 and RM8.770 billion in 2007, Ahmad said.
The figure rose sharply to RM15.378 billion in 2008, due to the global oil price jump. Subsidies paid in subsequent years up to 2013 were RM5.593 billion, RM9.065 billion, RM20.275 billion, RM24.726 billion and RM23.458 billion, while this year’s estimation is RM22.24 billion, he added.
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say no to GST..increase the Rakyat’s income 1st then we can talk about GST
Gov just love to make up story GST this GST that. ..
In cause of making nonsense suggestion what about just demolish excise duty and all hidden taxes…
Simple solution Rakyat will be happy.
Buy car – GST
Buy Fuel – GST
Repair Car – GST
Mod parts – GST
Toll – GST
Car Park – GST
For the government and cronies to enjoy Bentley, Lambo, Malaysian tax payers have to die poor.
Example, one apple coming to Malaysia, when import it need to pay 6% from dealer. When dealer sell to distributor, distributor need another 6% to gov. Assume distributor sell them direct to customer, customer need to pay 6% again. So min 18% goes to gov. Unlike last time only 1 time tax when import apple. So u say goods price coming down due to Gst? Get ready for inflation my dear Malaysian.
You example given was totally wrong.
Please visit http://gst.customs.gov.my and read all that first then only you can understand how gst is working in malaysia.
Dont comment if u do not sure, u end up giving false info to others who might also dont bother to get the real truth.
Bottomline, if u are a manufacture or wholeseller, u will be scared to increase ur profit margin because gov will know ur actual profit.
Here comes the LHDN… lol
p/s: big taukey will be affected lah…ofcoz la they dont want gst…untung sikit maaa….
go and learn english then u can understand Goods and Services Tax better
Nampak sgt kebodohan die ni!!!
NO, it is not like that. For normal items, the buyer can claim back the GST paid by previous seller. The buyer only need to pay the tax on value added.
Example: item cost RM1
A sell B RM1.06 (RM0.06 is GST)
B sell C RM2.12 (RM0.12 is GST) but claim back RM0.06.
C sell D RM3.18 (RM0.18 is GST), but claim back RM0.12.
D sell E RM4.24 (RM0.24 is GST), but claim back RM0.18.
E sell to customer RM5.30 (RM0.30 is GST), end customer absorb all tax.
BUT!!! For CAR only!!!
*New car*
Importer buy from oversea RM106k (RM6k GST)
Importer sell to A RM127.2k (RM7.2k GST)
A sell to B RM148.4k (RM8.4k GST)
B sell to end customer RM159k (RM9k GST)
No one can claim GST, total GST: RM24.6k
Second hand)
Toyota sell A RM159k (RM9k is GST)
A sell B RM84.8k (RM4.8k is GST)
B sell C RM53k (RM3k is GST)
No one can claim GST, total tax: RM16.8k
Don’t forget there are still excise duty, import tax, AP etc!
All parts and services need to pay GST. The car price will hike! So be prepared.
Thank you Govt. and welcome GST. We are going to join BN (Broke Nation)!
“The subsidisation and sales tax-exemption of fuel is a huge cost to the government”.
What an idiot.
If the government does not spend too much money on unnecessary items (purchase of items above value, bribery, unnecessary events etc), these subsidies and tax exemption is not a huge cost to the government.
I thought excise duty for cars already contribute high profit for the government. What happen to those money?!
Corruption ;)
Aiyoyo… works two ways mah…
“The subsidisation and sales tax-exemption of fuel is a huge cost to the government”.
can also be…
“The excise-duty of imported cars is a huge cost to the people”.
Of course it has to be GST free for patrol, WTH…isn’t we get enough for inflation?
panda gst money for the animals rakyat suffers umno bn kroni kaya
Do you believe this government?
ron 97 2.85
ron 95 2.81
apakah.. mati2 kene tipu.. wakakakaka..
what are u trying to prove?
anywho ron97 is also subsidized.. from rm 3.++ to 2.85
i think it would be better if the govt abolish the subsidy for 97 and just fully subsidize ron95. all of us (lower-middle class citizen) would be much happier.
Ron97 is not subsidized la noob.. First day in Malaysia?
I’m no economist but why don’t gov just subsidise RON 97 and abolish RON 95 since the price are not much difference? I have to think many times if I want to buy a used car like Mitsubishi Evo, Honda Civic Type R, Suzuki Swift Sport, etc. But still I prefer if the gov float RON95 and diesel and reduce the excise duty on cars to be fair.
Because Gov cheat you. RON 95 is really RM 2.10 market price. Where got subsidy…on paper only!!! LOL.
Got proof or not?
You are stupid enough to use my name and failed to see sarcasm.
Congrats.
Not much different?
Even if only subs for 70 cents/l…how many liters u think all Malaysian used?
Even at 2.85/liter of RON97, come visit Johor Bahru/Pasir Gudang/Tg.Kupang, u’ll see the Singaporean taking advantages buyin RON95.
Even RON97 is stiil much cheaper for them.
Very hard to pleased ungrateful Malaysian. lol
every thing also not good… make ur own government la sai….
You are really stupid. Do your maths man.
RON 97=RM 2.85, RON 95=RM 2.81
Difference is only 4 CENTS.
Since you are going to subsidy, just do for RON 97. So we pay RM 2.14 for RON 97, instead of RM 2.10 for RON 95.
Why bother with all the hassle of having RON 95 at all? The processing cost, the logistic, the admin cost and whatever cost of having 2 fuel type.
Wakarimasuka?? Faham?? Understand? Ming Pai???
:x
‘Could’???? if nobody raises this issue, it WILL be imposed with gst..bloody government..
im okay with the implementation of GST as long as the govt. abolish the excise duties and sales taxes on cars and upgrade to euro 5 fuel! at least we have a better car that is more fuel efficient = less fuel ups = savings for the govt.
Nasib baik Rafizi kecoh berkenaan hal ini. Jika tidak buta-buta rakyat malaysia kena bayar gst jika beli petrol.
The Government think that by not enforcing GST on higher grade fuel, the rest of goods will not have increase in price. They forget about 1 thing. Those millionaires drives luxury vehicles that uses high grade fuel will also pass the increase price in fuel to the end users.
Let say a millionaire driving a Ferrari and used high grade fuel. Let say this millionaire sell something that everyone uses, be it poor or rich. Whatever expenses he occurs, he will claim from his Company, thus his cost of doing business increase. Guess who will pay the extra money he spend on the high grade fuel?
I am not an expert in economy, but I think the Government is not thinking rationally and did not think enough.
“Think” and “brain” is not in the dictionary use by our goverment.
What you mean by could be exempted? Should not have GST!
X GST
reduce subsidy + gst = rakyat suffer
Consumption tax on a subsidized good.
#OnlyInMalaysia
Save your bread by spending less on luxury items like CAR. Replace with cheaper ride or even maybe buy one CAR and drive for minimum 8 years :)
That’s reality after all.
Impose GST provided no cost increase within 10 years, if cannot just say no GST
Or
Income increase annually
GST= GOVERNMENT SUCK TAX
Sorry, not commenting on this post, just wander why some other post are comment disabled?
Hi, which post?
Bn mmg jahat. Mau matikan rakyat. Bg rakyat jd miskin. I know some countries who implement GST but the rakyat did not die, because they abolish all taxes but only implement GST. BN UMNO GST will totally be different. It will only berat sebelah tahap gaban and rakyat will die poor. Stupid government la. Asyik menyusahkn rakyat aje. Pegi mati la.
“The subsidiZation and sales tax-exemption of fuel is a huge cost to the government”
Sales tax-exemption is not a cost to the govi,
subsidizing the fuel is not a huge cost to the govi since we are an oil producing country, the govi should be making huge money selling these imported low grade euro2 fuel to us rakyat.
GST = Government Say Thankyou. =)