GST for petrol, a may or may not?

There is still no decision yet on whether petrol and diesel purchases are taxable under the Goods and Services Tax (GST), said Deputy Finance Minister Ahmad Maslan.

Ahmad said the government may decide on this together with the new fuel subsidy scheme, which is slated for implementation on Sept 1.

"It may happen, it may not happen. However, in principle, subsidies need to be targeted to help those who are in trouble," he said at a press conference today.

He added that the issue is being deliberated 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.

During a briefing on the GST earlier, Ahmad said that under the current system, some 70 per cent of the government’s fuel subsidy bill of RM22.4 billion goes to the high and upper-middle income groups, while only the remaining 30 per cent goes the lower and lower-middle income groups.