Thursday, September 11, 2014

GST for petrol, prices likely to go up

 | September 11, 2014
The Customs Department reveals that petrol will not be exempted from the GST.
minyakGSTKUALA LUMPUR: Petrol will not be exempted from GST and this means the petrol price is likely to go up.
According to a news report in Sin Chew Jit Poh, the Customs Department revealed in a GST forum that petrol will not be exempted from GST.
Petrol is a government subsidised product. Imposing GST on petrol is akin to removing subsidy on petrol thereby burdening the people.
The subsidised price of RON95 is RM2.10 per liter, imposing GST on RON95 will raise the price to RM2.23 per liter and this is no different from removing 13 cents per liter of petrol subsidy.
In an interview with the paper, Senior Assistant Director of the Royal Malaysian Customs Department Isa Daud also said that Malaysia’s GST is a progressive tax rather than a regressive tax.
Chong Zhemin, the DAP Perak Economic Development Bureau chief said this is not only a misleading statement from Isa Daud but a desperate attempt from him to justify the implementation of GST.
“There is absolutely no doubt that GST is a regressive tax,” he said.
~ Free Malaysia Today

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