Putrajaya was again forced to deny that petrol and diesel will be hit with the Goods and Services Tax (GST) due to be imposed next year, following reports citing a Customs official as saying the two fuels were included in the list of items that will attract the consumption tax.
Deputy Finance Minister Datuk Ahmad Maslan today insisted that the government was still undecided on how to treat petrol and diesel when the GST comes into effect next April.
“We have not made a final decision,” Ahmad was quoted as saying by Star Online in a report today.
Pump prices of the two fuels may change depending on how Putrajaya classifies them. They may attract the 6 per cent GST, be exempted from the consumption tax or be zero-rated.
The latest denial comes as the Customs Department is preparing to finalise the list of items that will be taxed under the new system.
Earlier today, a report by Sin Chew Daily in which an unnamed Custom official confirmed that petrol and diesel will not escape the 6 per cent tax.
The government is planning to implement GST starting at 6 per cent next year, to replace the existing Sales and Services Tax (SST) which currently stands at 10 per cent.
However, unlike SST, which is imposed on a limited scope of consumption, the GST will cover a broad base of goods and services, many of which were previously not affected by the SST.
The government has admitted that the implementation of the GST would lead to a nominal increase in prices, but noted that consumers are only required to pay tax on goods and services used.
Prime Minister Datuk Seri Najib Razak is scheduled to present Budget 2015 on October 10, in which subsidy rationalisation and the GST are expected to be headline items.
