Malaysians already burdened with rising cost of living should brace themselves for costlier petrol and diesel when Putrajaya carries out its plan to impose the Goods and Services Tax (GST), warned a PKR lawmaker.
Pandan MP Rafizi Ramli (pic) said the ruling Barisan Nasional government is planning to do a "shock and awe" announcement on the people, possibly in September when it plans to announce the new fuel subsidy and bundle the broad-based consumption tax into it.
He estimated that Putrajaya could collect a revenue of at least RM3 billion in GST from fuel and diesel a year, and this will form between 12% and 14% of the total GST collection.
"This will make petrol and diesel the largest component compared with other goods and services," he said at a press conference at the parliament lobby today.
Deputy Finance Minister Datuk Ahmad Maslan had said last week that Putrajaya had yet to decide whether petrol and diesel will be taxable under the GST, adding that a decision might be made together with the new fuel subsidy scheme due to be implemented in the third quarter of the year.
"It may happen. It may not happen. However, in principle, subsidies need to be targeted to help those who are in trouble," Ahmad had said.
The matter, he had said, was being discussed by a joint committee under Finance Ministry and the Domestic Trade, Cooperatives and Consumerism Ministry and will be approved by the Cabinet before any announcement is made.
MORE TO COME
- TMI
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