Thursday, October 2, 2014

Will petrol and diesel be exempted from GST?

Press Statement by M Kula Segaran, DAP National Vice Chairman and MP for Ipoh Barat in Ipoh on Oct 2, 2014
Will petrol and diesel be exempted from GST? 

Last September, when news circulated that there would be an increase of RON 95 fuel price, many had dismissed the news and said that fuel increase would only affect RON 97 which is used by big cars. Many could not believe the increase would involve RON 95, which is used by small cars.
When the news was confirmed, many were shocked by the quantum which was an increase of RM 20 sen per litre for RON 95an diesel.

Yesterday, the government announced another round of increase of similar quantum for RON 95 and diesel, under its subsidy rationalization scheme. 

The announcement only means under the “spend, spend and spend “BN government, there will be continued subsidy removal exercises which will burden the people. 

There is no doubt that the steep  increase is bound to have chain effect which will burden the people, despite the government’s  plan to dish out more money under the BR1M scheme.  

But what is most worrying now is whether GST will be imposed on fuel prices when the new tax comes into effect next April, thus causing more burden to the people.

Does yesterday’s increase mean that the government has decided that there will not be any imposition of GST on the fuels? 

Last year, Kinabatangan MP Bung Mokhtar had been most insensitive when he tweeted the following on the fuel increase:-

“Petrol prices have gone up, but it surely would not burden the rakyat as the only people with big cars are prominent figures who can afford it. Kampung people don’t have car”.

Will he again make such insensitive and silly remarks to support BN government’s announcement to increase fuel prices? 

Bung and the BN government must realize that a car is a necessity and that under good governance, subsidy for the needy groups is necessary. 

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