Prime Minister Datuk Seri Najib Razak has confirmed in today’s Malaysia Budget 2015 announcement that RON 95, diesel and LPG will be exempted from the Goods and Services Tax (GST) that will come into effect in April 2015. This brings to a close various rumours on the matter over the past few months.
With this announcement, RON 95, diesel and LPG will stay at their current prices (RM2.30, RM2.20 and RM1.90 per litre/kg respectively), at least until the next fuel price revision. Not surprisingly, RON 97 was not mentioned, so it’s safe to assume that the premium unregulated fuel will be subjected to the 6% GST come April, effectively raising the price from RM2.75 to RM2.92.
As for the much-talked about subsidy rationalisation plan of petrol, diesel and LPG, Najib Razak mentioned that it will be implemented in stages, with the government mechanism to be officially announced “in the near future.” Last we heard, the subsidy rationalisation of diesel is expected in January, while the plan for petrol will follow at a later date.
On a side note, since the 1Malaysia People’s Aid (BR1M) rates have again been increased by between RM50 to RM300, will we see yet another fuel price hike soon? Tell us what you think of this in the comments below.
Can someone enlighten me. If you look at the price they sticked at the pump, RM2.75 is already taxed. So coming apr’15, RON97 will be double taxed?
GST will replace Sales tax if currently tax..
No point talking about GST What is MOST important is where is Najib’s promise to reduce car prices by 30%?
More than a year ago, Najib promised every single of the 30 million Malaysians that he would reduce car prices by 30% if we voted for him and his BN party before the elections.
Najib swore that BN always kept their promises and we Malaysians had nothing to worry about BN not keeping their word. He told us not to trust Pakatan and he firmly said he would match Pakatan’s manifesto of reducing car prices by 30%.
More than a year has passed, nothing has reduced. Infact, car prices have gone up!
How can we trust Najib, BN and UMNO if basic promises like this they cannot keep? This is just a basic and simple promise. What about bigger promises of tackling corruption, improving healthcare and education?
Has Najib lied to us?
Malays will suffer the most with the rise in fuel cost as they form the majority in this country and they are the ones suffering the most. Recent survey indicate 2 million households in Malaysia are earning RM3000 and below.
Want to guess who the majority of the 2 million households are?
Still want to support UMNO?
Even Sultan Raja Nazrin has refuted Government figures and he proved that 78.6% of all EPF contributors earn Rm3000 a month and below.
Government tried to give false figures that we are on our way to be high income nation in 6 years time 2020 ie US$48,000 GDP per capita.
So how in 6 years time, the average income going to be (US$4000) RM12,800 per month?
Now already 78.6% of EPF contributors are earning below RM3000 (anywhere from RM500 to RM3000)
Ahahaha once kantoi, now wanna divert the issue pulak. The same comments at different postings with same sequences.
A true blue politicians machai characteristics but claimed to be so called car enthusiasts.
Sick la woii!!
No 6% GST, but another 10% price hike (like the recent 20sen hike).
With GST, you can stick with 6% only. With “rationalization”, you can increase all the way to RM8 a litre (if GST can’t cover their greed).
Which is a better deal? Simple choice!
a blatant lie and moronic ignorant
he didnt promise that. and that promise was done by someone else and the maximum is 30% over a few years
okay let just incorrectly say he was the one promised that.
he already slashed a mitsubishi vehicle price by 15%. in a year alone.
get that done, kid and stay away from cannabis
You voted for BN & UMNO ke?
Barang Naik,
Janji ditepati and dicapai somemore
If they tax Ron 97 it will encourage more Merc and BMW owners to persevere with Ron 95. The govt should be encouraging Ron 97 usage.
TheStar headline stated petron (Ron95 & 97) exempted…so kena or not?
i don’t think the price hike will be soon, but it will come, along with many others. i believe the only way to make things “cheaper” is we earn more money from now on.
Agreed, we must earn more from contraband products. Not only we can pay for the expenses, we also can avoid income tax as well.
Ah! Didnt saw this coming… Regraded I become a good person this whole time.
No matter how much you earned.
You get squeezed.
After GST implemented.
All goods price up. not only 6%, it could be 15-25%
due to each tier/supply chain taxed.
Market purchasing power down, market non active.
Earn more money could be a dream.
Even we can make our dream success,
you will be taxed or audited on next year.
Blood sucker, dont suck our blood.
Yes Very soon, crime rates will go up as people start to do part time as robbers and thieves in order to make more money.
But dont worry yah…”isolated case” as our dear police will tell you.
“Soon” mean NO SOLUTION of rationalisation to balance up the the reduce of Petrol subsidy over Excise Tax 75% onward, Import Tax 30%, GST 6% towards targeted group.
The OTR vehicle price will only DROP only if the Excise Tax (75% onward) & Import Duty (30%) reduced.
4% saving from GST implementation just nice to balance up the profit margin over the increase of operation cost from electricity 15%, petrol-transportation, manpower cost, etc…
Event/Year End Promotion alone already marked could have more than 4% of discount given.
Next fuel hike. Off course. Brace for it. Just wish the govt would get it’s act together and use the subsidy cut savings to cut through the political and redtape BS to implement a better and efficient public transport system for not only the KV but all major towns in the country. Probably a wish too far for the forseeable future. But no GST on wishing so there.
Buy 2 belts from next year on to tie up your stomachs (ikat perut)
Do you know what’s the saddest part here..the petrol price is only going to affect the rakyat..I don’t see the ministers give a damn about this..n please government..the BrM people aid is total bullshit..the aim is good but when it is excuted,it is total bullshit..the money goes the everyone,instead of the targeted people..my friends bro comes from a well to do family n he end up getting the aid,just because he is started working..n used it to buy games..
I don’t think there will be price hike soon until “subsidy rationalisation plan” come out. By then, we will have quota based subsidy most likely will depend on individual/household income and/or car cc’s capacity
Whatever they do, sure got lobang one. People will find lobang to get cheaper fuel.
The bigger problem is this. First fuel is getting expensive, so we look at a more efficient car. Hybrids are kinda out now cause you are only left with the Jazz which is too small for a family, the S class which is sold out, and the Serena S Hybrid, which TBH is a bit disappointing as it doesn’t have side airbags for a family car.
So we will look at highly efficient petrol and diesels. Nothing beats the Germans in this game. VW prices are pretty high, MBs, Audis, BMWs are out of reach from Joe Public too. The Japanese, well only Mazda seems to be giving the Germans a run for the efficiency, but again, Mazda’s CX5 interior is so-so, and while the Mazda 6 is good, it is not cheap. The highly efficient French diesels are not cheap either.
Looks like no choice but to stick to the current cars and pay the fuel bill then?
PS: To whoever who asks, who is Joe Public, no Mr. Public doesn’t exist. It is a generic name used informally to denote a hypothetical member of society deemed a “common man” in the United Kingdom. If you terkeliru, then never mind. Grab a cup of tea and have some scones.
Perhaps an E300 Blutec Diesel Hybrid? But i agree completely, its way above Mr. Joe Public pay grade to get an efficient running car.
Perhaps a revival of Proton Wira 2.0D?
I’m not too sure if the E300 BlueTec Hybrid will even make it, For MBM to recoup the investment of tooling in a year seems highly unlikely.
Wira 2.0D…. Well, they screwed Campro up nice and well, I’d be a bit concerned if they went down the diesel route.
Mercedes are now collecting orders for their E300 diesel hybrid units. April 2015 scheduled deliveries.
They want u to buy P1 Axia!
Where got P1 Axia?
_|_
too much fuel price hike will only serve to make the current or future investors looking for better countries for business opportunities.
no gst? im sure we all know wat comes next? so call ‘rationalisation’ of subsidy…ie the petrol price will still go up
that najib already said several yrs already..subsidy of petrol is going down whether u like it or not.
Gov shouldn’t have extended BR1M fiasco.
Why the do you want to give money to people who don’t even pay income taxes? where’s the logic in that?
to win their votes ofcoz!
I know i will get a lot of negative downvotes if i put it this way BUT we citizens are trying to go on our lives, yet this current shitty government continue to squeeze us dry. Ministers and MPs earning hundreds of thousands are yelling ikat perut? RM2500 is sufficient for a graduate at start? Officers decline to disclose information on spending of PM wife? No accountability and no transparency here.
More to come. No racial issue here, the biggest community, which is malay, will suffer the most. For those who voted for this government on last election, here’s what you got. Before you start to flame me to relate such issues with politics here, let me tell you something: Politics affect EVERYTHING.
What we want is not merely low price fuel and low priced cars, but a whole new culture that defeats the corruption and irresponsibility in our beloved country.
Why lubricant, oil filter, air filter, spark plugs, bearings, batteries, brake pads, tires, rain wipers, light bulbs NO GST exemption?
20 cents recent hike from RM1.90 is more than 10%. Thats why no GST
20 cents recent hike from RM2.10 is almost 10%. Thats why no GST
I think fuel price will increase to 2.50 soon. Government needs money to give it back to us.
once again..Malaysian Clown PM throw his magic words…bilelah ko nk mampus jib…
You support me mah! of coz you have to pay!
You support Barang Naik.
Mestila Barang Naik.
Silly hai…
Ok la, I can see your effort to work for me.
You are so hard working.
i will give you little candy, you want 500 or 1000?
Then you have this little candy to buy fuel la.
DONT MAKE NOISE. What you want again?
Why m I not surprise? We all know all the Budget is piece a crap mainly to thicken them and the cronies wallet. Who gives a shit about rakyat? Do they mentioned to improve the nation’s education system? Stop giving out BRIM. YOu cheapskate, and those who condemning the G but still take BRIM. Y’all are the cheapest of the cheap. Giving hand outs will not benefit the rakyat. G should reduce the fucking tax and at the same time improve out shitty education system so that the majority community can actually benefit from it and be competent and strive for better living.
Wait…. Wait up…. Sorry my saudara melayu, but G depends on u to survive. hence, they are willing to sacrifice the country education level so that most Malaysian are not competent enough to compete. And kampung folks will remain kampung dwellers. Its called divide and conquer.
Most of kampung youngsters and educated are now living in the cities lah bro…
Dont underestimate lah…just because u live in the city, that does not prove u as more superior than kampung people.
Most of pakcik2 makcik2 susah2 kat kampung are very grateful with BR1M, on top of that a lot of kampung people are helping each other i.e sharing2 lauk for makan2…
which very seldom to be seen in your superior city-life…
Now saying kampung people not competent…
I dont know what happen to u lah…so short minded… open up ur mind lah bro…
Budget already tabled, accept it lah…dont accept its up to you…but dont insult kampung people lah…even chinese, indian and most of the races in Malaysia still lives in kampung lah bro…
haishh… be grateful even a bit.
Dude, I can have the right to be ungrateful after all the things G has done. Im not looking down on kampung ppl. waste my time on that. Its their attitude I dislike, always bersyukur this and that. When I say kampung, not only referring to Malay. Chinese and Indian alike. Because I ahve came across many Kampung Chinese actually voted for BN and their – up mentality is bersyukur because Malay gave citizenship to our forefathers. I was like WTF? They have to due to no choice. They cant ignore the British at first and still be – by the Mat Salleh till now. =) My point is when the G term is up, its time to vote them out. Dont think of the past. Did the G think of the past of how chinese and indian kept them in power in 97 when most Malays sway from them? All we chinese and indian wants is peace and be treated fairly. No need all those hak like Malay and we are still striving. We just need a fair treatment and not calling us pendatang when most pak menteri also pendatang from Indon.
We are moving “Forward” to few thousand years ago.
They want their ppl zero knowledge.
Easy control….
Guys and girls, no matter what color you like..
you must learn more, read more, think more…
Man can change the world because of knowledge,
Animal control the man by power.
Man, you are the man, can you lose to an animal or under Apes control?
In that case, can we have RON98 instead of 97?
the govt cannot be trusted…..proven so many times….over so many occasion.
Can we trust u? lol
Rosmah Over Najib (RON) saya mesti pilih
I’m a tax consultant and have been involved in Budget commentary every year for the past 15 years. Last night my colleagues and I went through the 2015 Budget Speech and Finance Bill to analyse the proposed changes and commentary for Budget Update Publication.
FYI, the Government used the word “Melepaskan” instead of “Kecualikan” for RON95. It means GST on RON95 is relieved and NOT exempted. So in the future, depending on how the country’s economy performs, GST may be reintroduced on RON95. The list of “zero” and “exempt” list was supposed to be released along with the Budget Speech and Finance Bill. When we enquired, we were told the Customs list will release it next week. Let’s wait for the details.
Just a matter of time the price becomes USD1/RM3.20 per liter
Truth be told, city people will suffer. I grow up in kampung and based on what is being tabled, the kampung people will not suffer simply because they live simpler life compared to us city people. This is where umno base of power lies. My kampung folks all very happy with the budget. They got brim 950 oso dah happy. My advice to PR, to win kampung folks you need to stop touching religious issues like kalimah Allah and oso dont touch the hak melayu. Then kampung people will be on our side and we can vote out this G.
I don’t mind if they charge GST to everything in malaysia, as long as they made full use of it.
We have to be forward thinking, don’t always say government is bad, evil etc.. if you say tak cukup makan, then go work a few jobs la, what is so difficult? spend less, don’t buy latest smartphone, drink less starbucks, then you can live comfortably in malaysia
Yes. If work properly, everybody willing to pay for it.
I like malaysia. But want quote an example.
Singapore, Jiran kita.Zero subsidize on fuel.
Import, export ZERO tax. Free trade.
GST applicable for local sales which is 7%.
From figure, which is higher than Malaysia 6%.
But, think about it. … Malaysia total tax is higher than Singapore. Are we advance than Singapore?
Secondly, during singapore GST implementation.
It’s common practise in others country too.
http://en.wikipedia.org/wiki/Goods_and_Services_Tax_(Singapore)
Started GST rate
1994 – 3%
2003 – 4%
2004 – 5%
2007 – 7%
Used 10 years to increase to GST 5 %
Barang Naik like to fool people..
others country GST higher..
Obviously, Seems like urge to get big money to do or to save something..
Robert Kwok, Lim’s family…
move out.. they forseen for long term..
By the way, I m a childish kid..
Shouted to myself.
Superman… Spiderman… batman…
save my soil, save my soul.
Tarzan, tame your binatang to erode my life quality. I m getting poorer and poorer, weaker and weaker..
Just float the fuel prices la…no need subsidies to joe public….subsidies only for industries so that cost of operation will drop….which more likely benefit more to the rakyat…..but if government want to float fuel prices must cut the taxes on cars to the minimum which we know is one of the major debt for us malaysians.
MBM hybrid is brought to G ppl.
not you.
Cheapstake tricks again again….
Superman, batman, flashman, banana man,ultra man, pls come together save our soil….