SHAH ALAM, 11 June: The Barisan Nasional (BN) Government targets the collection of goods and services tax (GST) from petrol and diesel to reach 12% to 14% from the total tax revenue.
The Member of Parliament for Pandan, Rafizi Ramli, said that the amount of GST collected from the two fuels would be the highest compared to other goods and services, which is expected to reach RM21 billion to RM26 billion per annum.
He said that based on the annual consumption of petrol and diesel, the collection of GST from petrol and diesel will reach RM3 billion each year.
“It is impossible for the Prime Minister Datuk Seri Najib Razak and his cabinet not to take into account the effect of GST collection without it being imposed on petrol and diesel because it may cause proceeds to be insufficient to cover the deficit budget.
“Najib wants to avoid initial protests from the people and announce the GST on petrol and diesel together with the reshuffling of the petrol and diesel subsidy planned on the quiet,” he said in a statement today.
On June 6, the Deputy Finance Minister, Datuk Ahmad Maslan, was quoted saying that BN has yet to decide whether to impose the GST on petrol and diesel.
He indicated that this will only be announced together with the re-shuffling of the petrol and diesel subsidy system scheduled in September.
Elaborating, Rafizi said that the action will only increase the burden of fuel costs and exacerbate the problem of rising prices which is currently pressing the people.
He said that the government can curb inflation by imposing a zero rate on the major fuels used by the people, such as petrol, diesel and electricity.
“Any overhaul of the subsidy system on petrol and diesel can only be implemented after various biased agreements that burden the people and leakages in expenditure are stopped by the government.
“After that, they the subsidy system revamp can be studied in more detail to be implemented,” he said.
