Petrol to be GST-free

Covering a wide range of essential goods, Budget 2015 promises to create a “People Economy” powered by GST-exempt items that will be kind on the pocket.

The best news thus far is the decision to keep the retail sale of RON95 petrol, diesel and LPG GST-free.

Next come a long list of food items as well as medicines and reading materials:

(i) All types of fruits – local and imported;
(ii) White bread and wholemeal bread;
(iii) Coffee powder, tea dust and cocoa powder;
(iv) Yellow mee, kuey teow, laksa and meehoon;
(v) 2,900 medicine brands used to treat 30 types of diseases including heart failure, diabetes, hypertension, cancer and fertility treatment;
(vi) Reading materials such as children’s colouring books, exercise and reference books, text books, dictionaries and religious books; and
(vii) Newspapers.

70% of households also have a reason to smile as under Budget 2015, the government has agreed that electricity consumption that is not subject to GST be increased from the first 200 units to 300 units.

Of the 944 goods and services in the basket of goods of the Composite Price Index (CPI), the prices of 532 items or 56% are expected to be reduced up to 4.1%.

These will include medicines, electrical appliances such as refrigerators and washing machines, textile products, plastic products such as pails and plates, shoes and slippers, household furniture, baby diapers, soap, meat, chicken eggs, cooking oil, seafood, rice and vegetables.

Meanwhile, about 354 goods and services may experience some price increase but less than 5.8%.

It is hoped that traders will act responsibly and refrain from hiking up prices indiscriminately.

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