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.
Oh no, please don’t let this be true..
If they want to apply GST to petrol, they should remove the existing sales tax of 10% from petrol price.
Dumb ass.
If the current prices of fuel is subside how can you remove sales tax of 10%?
Please don’t say dumb things before doing your homework.
So does our Pm and govt servants pay taxes or are they exempted to pay income or other taxes because they work for the country??
Even govt servants pay their taxes. I do not remember any particular order to LHDN says that govt servants are exempted from paying their taxes. Except if their income are below the minimum pay for taxes deduction, and that also apply to all even the private sector.
Dumb ass.
If the current prices of fuel is subside how can you remove sales tax of 10%?
Please don’t say dumb things before doing your homework.
Let me enlighten you naive brain on the subject matter:
Malaysian’s who don’t pay or should I say run away from taxes:
(1) owners of small medium businesses
why because they can do creative accounting and fiddle their books – this include both legal (electronic shops, restaurants etc..) and especially ilegal businesses (VCD shops, gambling outfits etc..)
(2) Business men/women – through their busines ventures
(3) small time sellers (hawker seller, coffee shops, outlets – why because they are difficult to identify)
(4) people who setup internet selling sites on Lelong etc…, not necessary to setup company, can’t detect income sales and don’t declare under their personal income etc…
(5) those traitor Malaysian’s who run away and work overseas such as Singapore for example. They definately don’t declare their income or pay taxes but come back to Malaysia to enjoy benefits and vote. (This is something Malaysia should follow UK, if you do not reside in the country you automatically are strike off the register voter. It is not relevant for these group to vote as since they do not live here what ever decisions are made by the elected government will not affect them. Infact foreign PRs living in Malaysia should be given right to vote as this will impact them since they live in Malaysia
(6) Current scummy foreigners also do not pay taxes. In UK wheather you are foreigner or local the moment you work in UK you must pay taxes.
Nuff said
Gomen says GST will not inflict pain on rakyat but GST can add RM26 billion extra income for Gomen,
So where is this 26 billion extra coming from if not from rakyat.?
Doraemon’s pocket?
We don’t mind paying GST and let govrm untung extra 26Bil !
But those money will makan by few fella personal gain n channel out n enjoy themself in other country instead of develop this lovely country -.-“
From people who do not pay tax/run for tax especially business man…. Those makan gaji is ok because IRB can detect easily if not paying tax
Add on GST for subsidies fuel, they can reduce the percentage on subsidies if they want to. Seriously, what a question to match with that kind of answer!!!
Who d eff cares!!!!
This GST should not be in the decide “list” in the first place at all. It should be excluded. Please think about the burden on the rakyat if you guys implement this GST on petrol.
I am not pro-BN or anti-pakatan, but I think GST is good. Here are my argument, please reply intelligently without insulting.
1. The shadow economy, also known as underground economy is approximately 20%. These dirty monies are not taxed, but they are using the same public facilities. These underground economies are prostitution, smuggling, illegal gambling, ah long, money laundering and more.
2. Only 10% of Malaysian pay taxes, is it far for the 10% to support the 90%?
3. The rich will pay even more when GST is implemented, they will buy big expensive car, they tend to change car often, they buy more, thus they are taxed more.
4. I believe 10 to 15% of the people in Malaysia are foreigners, they don pay tax but use the same public facilities. GST will force them to pay their fair share when they pump petrol, when they buy food, when they call home and etc.
I believe GST is good. What the public don’t like is how the gov misuse the money.
gst is fair only if they tax the rich first..meaning people who make tons of money from the stock market..for example..one billionaire recently made rm1.8 billion profit from his shares in a company..and guess what? he didn’t need to pay a single sen for taxes
That is because this guy is smart and had identify the loop holes in the system. In the US you are taxed on dividends and capital gains from shares. In Malaysia only dividends.
This needs to be revised
In US, you called people dumb ass then you will get shot next sec, brainless dick head.
How much American is paying their income tax? Don’t comment stupid bullshit before you do your homework, douchebag!
Ask your brainless dick head father to teach you how to read Protonist.
What kind of US tax are you talking about stupid cunt? Do you event know the shit statementis that is coming out of your shit mouth?
We are talking about gains from share and in the US you are taxed on capital gains from shares.
So before you write something please use that useless brain of yours to think first before attacking people with no facts. What a moron and best just SHUT UP!
My basic understanding of economy is not strength so if I do make a mistake please do correct.
1. So your point is?……
2.WHAT! Are you sure? I can agree if its 60-70% but 10%. That means if you walk out into the streets and 1 in every 10 people are paying tax, be it Income, road or Service tax. That also means there’s a high probability that almost all shop-lots , all cafe customers all Supermarket goers, manage to avoid tax?
3. The rich have ways to evade taxation. If they can’t get it through the dealer via the multiple taxation system, then they get it straight from the docks via their own AP or through ‘connections’
4.10-15% equates to about 4 million people which is more or less accurate. The legal registery already amounts to 1.5 million while an estimated 2 million are illegal. So pumping petrol, buying food and calling home as of now still have to pay tax, they are in no way avoiding anything at the moment. So how can GST improve things?
I think you dont get what GST means. By my understanding, the basic system consists of multiple smaller tax at every stage of the product supply line…..last time it was
Farmer = Factory = Supplier = Cafe = Product+tax =>Consumer
GST is basically smaller(as per government stating) taxing system at every stage
Farmer+tax = Factory+tax = Supplier+tax = Cafe+tax = Product => Consumer.
As of now the government is promising that it wont affect any price increase due to each tax being small but I’am not sure. Seems like an awful lot to me.
1. My point is these people are not paying their fair share but uses the same public facilities like roads, police services, hospital, and more. I would like to include to the list – people that inherited large sum of money from parents, strike lottery, thief and more.
2. Yes, data showed that 10% pay tax only. You can google the data. 10% because the young (0 to 18) and old (55-100+) don’t pay tax, these two group of people are in the majority. They consume but don’t contribute. As for the middle (19-54), not all of them pay taxes. Either they earn too little or not declaring their income to LHDN. Thus, only 10% pay taxes.
3. Those are the super rich. Not all bosses got AP. Those are in the elites, super minority. Our country economy is still powered by SME, not big corporation. These SME bosses are not likely to be well connected to get AP.
4. U basically answer the question yourself. They don’t pay tax when they buy food, pump petrol or call home. I say, tax them!
Yes I agree, GST will cause price increase and BN is lying. This is because history has shown that all countries that implemented GST has a spike in inflation.
note: GST is NOT taxing system at every stage. You got that wrong.
Farmer+tax (can reclaim gst) = Factory+tax (can reclaim gst) = Supplier+tax (can reclaim gst) = Cafe+tax (cannot reclaim gst when file for income tax by consumer) = Product => Consumer.
You clearly don’t understand how the tax system works. at the end of the day, everyone can claim back the tax, and the consumer can’t, thus the consumer is the one that pay for the tax.
This is a misunderstanding by most pakatan supporters.
I remember watching a video where Khairy and Tony Pua debated this issue, and Tony acknowledged that everyone thinks GST is taxed on all stages. It is not. The manufacturer, dealer, retailer do not pay GST, they can claim back from the government. It is the consumer that cannot claim back the GST when they file for tax return.
Read wikipedia for more info. under GST or VAT (more or less the same)
Theory
Farmer+tax (can reclaim gst) = Factory+tax (can reclaim gst) = Supplier+tax (can reclaim gst) = Cafe+tax (cannot reclaim gst when file for income tax by consumer) = Product => Consumer
Reality
Price Hike 10% to 20%.
Why? Because you TAX the rich who actually selling goods to poor people.
Suffer = Rakyat Malaysia aka. poor people
Gst tax at all level, they cannot claim full la, limited to amount paid by seller. U understand what u read or not? Demo:
A sell to B rm10 + 0.60. A receive rm10.60, pay 0.60 to govt
B sell to C rm20 + 1.20. B receive rm21.20, still need to pay rm0.60 to govt cuz remaining 0.60 already paid by A.
Anyway, in demo, even at source pay gst. If wanna claim, claim from who? God for supplying raw material to A?
Dafuq, was supposed to reply latukbandar.
The farmer, seller and supplier still needs to go out and buy stuff and necessities for themselves. So they are also exposed to the increased costs of living. What do you think they will do next? They are definitely gonna jack up the base cost of their products. The part where the make the profit for themselves!
@AVH and the rest…on matters 3 I do acknowledge AVH’s statement. The rich and those politician has all sort of ways in evading the taxes, one of which is true…they have been granted an AP through ‘connections’ thus allowing them to bring in whatever desirable cars they wishes. I’m in automotive industry and I can’t believe on how they could obtain such privilege knowing the person is not well known public figures, didn’t work at foreign country for years and he is sure as hell ain’t a student…just a mere ‘cronies’ after a few diggin’. Hmmm…what a lovely country!
You forgot to realise that Malaysia is a young population.
Children and kids who are obviously not on the employment register do not pay taxes!
GST is a mechanism to enable the government to prevent those tax evaders from running away and it also provides some form of traceability on the economic supply chain. It helps to tighted the economy and make it more efficent with less losses.
You may not see the benefit directly to you as an individual but collectively a more efficent economy will provide a more efficent country benefiting all living here. At least that is the main idea of the theory
my comment is.
1) this is what we called money laundring. they actually pay taxed using bogus company which seems legal in operation. they declare their income to lhdn n they pay tax. n the money inside their bank is legal. tadaaa.
2)in my office for example total income for the workers ( excluding boss) per year 130 people is Rm 11mil. total income for our 4 boses is rm18 mill. so do u think is fair to tax us more. or u can tax our boses more. the tax structure is the same if earn rm100k a year n rm 1mill in which 27 %. why not tax them more like 50% .
3) rich pay less poor pay more. why?.currently we have service tax which is 10% n sales tax 5%. this thing ussually applies at lawyers fees, , buying house (current 10%) buying cars (current 10%) hotel n expensive restaurant, after this all will be combined become 6%. so the rich will pay less. poor will now pay more, you have to pay tax for ur baby dypers, susu , milk bottle, kicap, shampoo, soap, detergent, sos cili, all about 80% of ur shopping items.
4) foreigners pay tax la bro. professional expats pays tax to lhdn same like us. international law already u pay tax where u work. general worker like bangla n indon pays levy.maids rm700 per year, kerja kilang a few thousand per year. now also impose foreigner health insurance.
my conclusions is there is nothing good about gst. if the answer to use gst money for nation development then show me the breakdown where the rm26 bill will go. no details right!!! smart gov, stupid for those who vote for them.
1. More often than not, they use cash transaction, clearly u don know how they operate. They declare a little bit so not to appear suspicious.
2. If u think boss must pay more, why don u start your own business and pay more taxes? U don want to take the risk, but expect those who take the risk and hardwork to pay more?
3. The tax collected when a rich man buy a mercedez s class is enough to pay for all of the taxes you gonna pay in ten years. And u probably use more public services than them.
4. There are more illegal workers than legal, do they pay taxes?
1. Then the government and police needs to step up their game and put a stop to these activities. Not introducing ways to tax these people which at the same time also taxes good law abiding citizens.
2. Where do you get these numbers from? I don’t think this is accurate.
3. The rich buys luxury cars because they can afford it. But don’t forget the poor guy next door also needs a car and other basic necessities of life. This poor guy also gets taxed when GST is implemented. The rich don’t feel the pinch of these taxes because they are rich but the poor guy will. So how does GST help the poor guy?
4. If you are referring to the illegals in our country, then the government need to put a stop to it a and send them home. Not imposing general taxes on their citizen. With such a high illegals numbers, shouldn’t crime and social ills become our bigger concerns? Why bother to think about how to tax them?
Fully agreed with Latuk.
Everyone should pay their fair share of taxes, be they rich or poor. The more you use the more you pay.
What we do not agree is HOW THE MONEY IS BEING USTILISED.
However, there is a big community called the GOLDEN AGED RETIRES, who have paid their fair share during the earning ages, now left with no income, and yet have to bear the same burden. I whished that someone up there would do something good for us.
Eh noob, this is not a place for you to discuss/give opinion on GST or government policies.. Since when paultan.org become politics forum?
Go away from here if you want to discuss politics.. This is automotive news website, not a site for you to show your ‘smartness’…
@RY – The title stated “Will GST be imposed on the purchase of fuel?” and posted in this forum, paultan.org where auto fans came to discuss and allowed voicing their opinions. How could NOT either government policies and their games of politics effecting our automotive industry? If the GST does being implement on fuels, where does it pump to? Answer is straight to each and everyone vehicles. How this not a part of automotive industry?
Aren’t this your statement, “This is automotive news website,..” and if does why does even paultan.org posted this topic if it ain’t related? One thing and one thing for SURE is that this forum doesn’t give the rights to you, Muka Hamper and the rest who simply says..”Go away from here if you want to discuss politics…”,”Hey, buzz off la from this site..” or “Leave this country..” as IF you all are the sheriffs in paultan’s town. Care to show your badge officers?
Finally
Someone here who has made some very intelligent statement. Kudos!!!
I am refering to latukbandar who has made intelligent statement and understanding of the whole picture not the others btw
why shld the rakyat be segmented into paying different rates for petrol since we paid tax heavily on vehicles that we bought? And the Govt shld not forget that V paid taxes in advance in this case!
LatukBandar:
GST is good if only the money are manage properly and the master plan for the country development is clearer than building a tallest tower or flying a 1Malaysia jet. That to common citizen has no meaning at all.
The underground business has not contributed anything to the society before the GST and they will continue to do so after GST. It will remain as 10% paying tax and 90% not paying taxes, except this time the whole society bring up to another level of inflation, just for an allusion of recoup the 90% who will never pay tax.
Btw, your roadside nasi lemak store that sell RM3.50 a plate to you may not be able to run their business as usual, because the cost to produce a cheaper plate of nasi lemak to you became not feasible. And the reason that she can sell you at lowest price is because she probably does not declare her own tax.
If you need to tax expatriate there is levy, there is work permit, there is income tax for expatriate. To have the GST in support the lose from expatriates does not make any sense at all. Btw, 6% increase on a local currency does not affect them who is paid by USD a month.
GST is for developed countries, when all things are well sort after, medical is taken care of for everyone, education is provided for, housing is possible, transportation is affordable. For Malaysia? Wait till Malaysian learn not to throw cigarette butts on the roads, not to spitting on the roads, not dumping rubbish into rivers.
Dont thailand burma and many poorer countries have gst too? If everybody wants everything free, who is going to pay for it? The hardworking rich boss? Well, then why don everyone go start abhusiness take the risk. Work on weekends too…. Contribute your fair share….
But, nobody wants to work hard or take unnecessary risk. They want everything free…. Money grow on tree?
New fuel subsidy rationalisation mechanism.
———————————————————–
This is euphemism at its best. Just say so in simple language that the Gomen wants to gradually withdraw the fuel subsidy.
Now why some Malaysian dont want GST system?
Restaurant tax – 10%
Gov tax – 6%
Gst (gov + service) – 6%
So majority is restaurant owner
They complain cos they need to pay rental
Rental hiked by owner of the shoplots
Fault = shoplots owner
Get it??
i feel sorry for u guys debating about the imminent petrol/diesel price hike dan GST. come on guyss…it’s not like u r going to die with this… Come what may, i can afford those un subsidized fuel price as well as those GST. Yeahhh…. im filthy rich and these hicupps is nothing compared to my wealth. remember..your WEALTH is your HEALTH…muah ha ha
Now the gov is trying to cover their deep debt hole. The fatest way to do it is by sucking people money(GST). They will do it by giving out of any excuse. Thats all..
Public transport will be exempted but every association will make formal request to ministry to increase price as each company needs to pay extra prices in repairing cost and management stuffs. So public transport is exempted or not, price still increase. I would like to say here “Rakyat Malaysia yang bijak adalah mereka yang tidak mengundi BN”.
We are ending up like indonesia, thailand, vietnam etc. Middle class will be poor in the next couple of years. There will only be 2 groups of people. rich and poor…no more middle class!
if GST is introduced to fuel, govt need to abolish tax on vehicles. we pay cheaper for cars, but the running cost (fuel) will be higher.
if i buy a small car, car is cheap, fuel is cheap.
if i buy a medium car, car price is moderate, fuel is moderate.
everything TAX! car have to pay expensive tax, petrol have to control price again, and GST coming.. thanks you BN
beribu ribu tahniah pocket saya berjaya
GST tax too little la. must Tax 10% better!
Regardless the whole thing will increase the costs of living. GST is a good idea in concept however we should clean our act first before we tax the people even more.
I am lucky to be working in the oil and gas industry but I also know our oil is a finite reserve it will not last forever. This year at an ExxonMobil town hall they were informed last year’s output was just 450,000 barrels of oil per day. Consider that three years ago it was close to 700,000 barrels per day. What we do have a lot is gas. That too is finite and good the most for another three decades.
Professional expats have always paid taxes and they get tax free salaries, their taxes being paid by their employers. They also pay work permits, visa etc. As for illegals and unskilled labour, how much do you hope to get from them in contrast to the hassle of managing them?
Yes there is the “black” unseen economy, it has always been there and it will always be there. Punishing the majority for failure to act and catch criminals, mafia, corrupt businessman and members of the government shows our cowardice.
As for illegal money laundering, just go around to KLCC and look at the few shops with no visitors and yet still sustain to keep up paying rental all this years. They are professional in their work to launder money in a million and one ways and bring the some of the money in between countries without even going through the formal banking system. They can easily move physical cash up to 100 million daily per transaction in an unmarked currency and it’s legal by our system. That’s how good they are.
GST on fuel?…might as well cut the subsidies and let it float then apply GST, at the same time cut the duties on imported cars to half….should make an even playing field
GST is a form of TAX that’s indiscriminate. Rich poor and everyone will pay the moment they spend. It’s an efficient way to tax and avoid tax invader. BUT… that’s always implement with reduction of personal tax as a mean of better and efficient tax collection.
Now… if GST is to be implemented, what sort of tax reduction that we will get? If not, it will be just another hanky panky nut job to rip off more from the rakyat.
Look at the car taxes, toll, freaking 28% income tax and etc etc… while the benefits so far is lousy education, long queue gov medical, bumppy paid highway, crappy car quality, lousy security…
In the end, rakyat is the ultimate looser.
We should let the 47% only pay GST. Then its only fair since they approve it.
Malaysians always mentioned Singapore is good, and now Malaysia follow Singapore implement GST, and now still want complain..
Do we have the efficiency of singapore’s public transport? they literally have no natural resources, we have plenty, but how do we ended up?
can we do what they did???
if you’re just being sarcastic, fine.
Msians like to mention Singapore is good, now we follow Singapore implement gst, still want to complain. Those with fiscal policy knowledge, will agree gst bring more good than bad.
provided MY gov is as prudent as SG gov.. after all,
SG has the best public infrastructure (even with the recent deterioration in their MRT service uptime, it’s still much better than ours), high income jobs, minimal income tax, strong SGD and etc etc..
What do MY has that it make sense to implement GST? more money for the gov to spend recklessly huh? buy more subs and other hanky panky purchase, look at the stuffs that we have built and how it has been maintained?
money is not solving the real problem but it just delay the real problem. Get your head straight and grow up (instead of sniffing the BN glue in your bedroom)