GST to be zero-rated starting June 1, petrol prices to be fixed

A screenshot of the statement from the Ministry of Finance.

KUCHING, May 16: The Ministry of Finance has announced that Goods and Services Tax (GST) will be zero-rated for all items and services in Malaysia, from June 1 this year.

In a media release today, the ministry said that the zero-rated GST applies throughout the country until further notice.

Items listed in the Exempt Supplies Order 2014 will also remain GST exempted.

The ministry also said all registered merchants and traders must adhere to the notice, and to ensure that the Price Control and Anti-Profiteering Act 2011 is complied with.

However, registered merchants and traders are still subject to all current regulations set in respect of tax invoice and tax returns within the specified taxable period.

The announcement came a week after the 14th general election, where the Pakatan Harapan coalition took over as the federal government.

Prior to this, the previous Barisan Nasional (BN) government had imposed a 6 per cent GST which came into effect on April 1, 2015.

Meanwhile Prime Minister Tun Dr Mahathir Mohamad has also instructed the government to impose a fixed petrol price.

According to The Sun Daily, Mahathir said he no longer intend to continue with the weekly price adjustments for fuel prices which was imposed by BN.

“There will be no up and down, the present market rate will stay. The government will subsidise if there are insufficiencies,” he was quoted as saying. — DayakDaily