'Speak up Najib, will GST affect fuel costs?'
Published: Sep 15, 2014 8:44 AM | Updated: Sep 15, 2014 9:18 AM
PKR MP Rafizi Ramli has urged Prime Minister to break his silence and tell the rakyat if the soon to be implemented goods and services tax (GST) will mean higher petrol pump prices.
PKR MP Rafizi Ramli has urged Prime Minister to break his silence and tell the rakyat if the soon-to-be-implemented goods and services tax (GST) will mean higher petrol pump prices.
He said that it is imperative for Najib, who is also finance minister to own up to this as senior customs officers have already been quoted in the media as saying that GST will apply to fuel.
"At a time when customs and excise department officers have confirmed the price hike due to the GST, Najib is secretive and silent.
"I urge Najib to confirm this and be honest with the rakyat," he said in a statement.
By Rafizi’s (right) calculations, GST of 6 percent on petrol could see household expenses rise to RM100 a month.
He calculated that RM50 of that will come from direct fuel costs while the other half is from knock-on effects on other consumer goods and services.
He bases this on the assumption that average petrol use per car user is about 80 litres a week or RM168 at prevailing pump prices for the subsidised RON95.
However, a poll on popular automotive website Paultan.org shows that most car users use between 100 to 300 litres of petrol a month or an average 25 to 75 litres a week.
Gov’t yet to decide
Meanwhile, The Star reports that the government has yet to decide if it will impose the GST will be imposed on petrol.
Deputy Finance Minister Ahmad Maslan (left) was quoted as saying this at the International Seminar on GST today.
The list of zero-rated items will be gazetted on Oct 10, when Budget 2015 will be tabled in Parliament.
Petrol was not in the draft list of zero-rated or exempt items which was part of Najib's Budget 2014 speech in Parliament last year.
GST-exempt refers to goods which are not taxable, while zero-rated refers to goods which are not taxable if used as supply for production.
He said that it is imperative for Najib, who is also finance minister to own up to this as senior customs officers have already been quoted in the media as saying that GST will apply to fuel.
"I urge Najib to confirm this and be honest with the rakyat," he said in a statement.
By Rafizi’s (right) calculations, GST of 6 percent on petrol could see household expenses rise to RM100 a month.
He calculated that RM50 of that will come from direct fuel costs while the other half is from knock-on effects on other consumer goods and services.
He bases this on the assumption that average petrol use per car user is about 80 litres a week or RM168 at prevailing pump prices for the subsidised RON95.
However, a poll on popular automotive website Paultan.org shows that most car users use between 100 to 300 litres of petrol a month or an average 25 to 75 litres a week.
Gov’t yet to decide
Meanwhile, The Star reports that the government has yet to decide if it will impose the GST will be imposed on petrol.
The list of zero-rated items will be gazetted on Oct 10, when Budget 2015 will be tabled in Parliament.
Petrol was not in the draft list of zero-rated or exempt items which was part of Najib's Budget 2014 speech in Parliament last year.
GST-exempt refers to goods which are not taxable, while zero-rated refers to goods which are not taxable if used as supply for production.
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