Prime Minister Datuk Seri Najib Razak who is also the finance minister has announced that Ron 95 , Diesel and LPG will be exempted from GST implementation as part of his Budget 2015 speech at Dewan Rakyat today. This move is to ensure that the implementation of GST will not burden the rakyat after recent fuel hike. Ron 97 fuel however will be subjected to the new GST tax. Previously, there were confusion when Malaysian Royal Custom Department listed fuel as non zero rated item while deputy finance minster maintained that the Ron 95 fuel is a GST zero rated item.
Additionally, Government will also be announcing a new fuel subsidy program to ensure subsidy reaches the correct income group of Rakyat in near future.
The government has also raised GST for electricity from the previous 200 units to 300 units which means that a household will have GST tax on electricity bill after exceeding the 300 units usage. This is believe to benefits 70% of the household in Malaysia.
GST zero rated items on basic food supplies has been widened based on input from all levels in the society.The Government has agreed to add more zero rated GST items which includes all types of imported and local fruits, wholemeal bread and white bread, coffee power, coco power, tea dust, mee hoo, yellow noodle, kuey teow and National Essential Medicine covering 2,900 brands. These brands are used to treat diseases ranging from diabetes, heart failure, cancer, hypertension and fertility.
Books and reading materials such as reference book, exercise book, text book. religious book and newspaper will also be exempted from GST implementation.
Najib as published on his blog that the budget 2015 will be a people’s oriented “Pro Rakyat” budget. Najip started the Budget 2015 announcement on 5:00PM at Dewan Rakyat today.