The government has not decided if the Goods and Services Tax (GST) will be imposed on the purchase of petrol and diesel, deputy finance minister Datuk Ahmad Maslan has said, according to a Bernama report.
It is possible that a decision may be reached when the government announces the new fuel subsidy rationalisation mechanism soon, he said, adding that the Cabinet was evaluating a list of 255 items to determine if they would or would not be subjected to GST.
“(Translated) So I will not say if fuel will be subjected to GST or not,” Bernama quoted Ahmad as saying at a Q&A session held during a GST social media briefing in Putrajaya.
Ahmad urged the public to obtain accurate information on the implementation of GST through the websites of the Communications and Multimedia ministry, the Finance ministry and the Royal Malaysian Customs.
It was announced in Budget 2014 that a 6% GST will replace sales tax and service tax from April 1, 2015, and that transport services like buses, trains, LRT, taxis, ferries, boats and highway tolls would be exempted from GST.
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AI-generated Summary ✨
The comments express concern that implementing GST on fuel could lead to increased living costs and inflation, especially for lower-income Malaysians who rely heavily on public transport and basic necessities. Many believe that GST would disproportionately burden the poor, as they typically use cash transactions and do not benefit from tax rebates. Some comments criticize government misuse of funds and argue that GST may be a means for the government to gather more revenue, potentially at the expense of the rakyat. Others highlight that significant tax evasion exists among certain groups and illegal workers, questioning how GST will improve overall tax compliance. Several comments also discuss the broader economic implications, emphasizing that current taxes on vehicles and fuel already impact prices, and some suggest subsidies should be managed differently. Overall, sentiments lean towards skepticism and concern over increased taxation hurting everyday Malaysians.