Myth Buster

GST Relief on RON95, Diesel and Liquid Petroleum Gas (LPG)

Scenario

Pursuant to the 20 cents increase in RON95 petrol and diesel on 2 October 2014, Alonso and Schumacher are worried that things may worsen after the implementation of GST. They were relieved to hear that Prime Minister Datuk Seri Najib Razak read the following at the Budget 2015:-

“Further, to ensure the implementation of GST does not burden the Rakyat, the Government has agreed that the retail sale of RON95 petrol, diesel and LPG be given relief from the payment of GST. Through this measure, consumers and targeted groups will not have to pay GST on the purchase of RON95 petrol, diesel and LPG.”

As the speech suggested, both of them felt relief that they will not be charged GST on their fuel consumption. Is that true?

Mythbusted.

TRUE if both of them fall within the “consumers and targeted groups” while FALSE if they do not. No specific definition was provided during the Budget 2015 reading thus the question remains whether everyone will enjoy this relief. A further clarification on the matter is certainly required to indicate if it is a blanket relief or only for targeted groups. The latest GST relief, exempt supplies and zero-rated supplies lists available in official customs website provide no clear indication to the same either.

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