Minister dodges GST for petrol, points to year end

The government has evaded the question on the goods and services tax (GST) for petrol and diesel, saying a decision will be made near the year end, after finalising the fuel subsidies.

Speaking during the Bernama GST conference today, Finance Minister II Ahmad Husni Hanadzlah said the matter could not be addressed now as the government was still deciding on the finalised fuel subsidies.

“We are looking to finalise it by late fourth quarter this year and is to be implemented by next year” said.

Husni said a through study is currently being conducted  to determine the type of fuel subsidy to be implemented.

“We want to make sure that it will bring benefit to our people. We are looking at what salary level that subsidy should be given to.

"Those RM4,000 below, what is the amount of subsidy they will obtain; those with higher salary, what kind of subsidy they will get," he said.

Pressed on the exemption for fuel, he said, "We will make a decision during that time whether to exempt or not. We have to wait for that.”

Last month, deputy finance minister Ahmad Maslan also refused to confirm whether petrol and diesel purchases will be exempt from GST giving the same excuse that subsidy cuts were being studied.

Husni meanwhile said an additional number of food-related items will be included in the list of GST exempt and zero-rated items, and this will be gazetted next month.

“We have made changes based on the feedback received from the people. Particularly on food items that were included in the GST previously”