PETALING JAYA: Replacing the Goods and Services Tax (GST) with the Sales and Services Tax (SST) will return RM17bil to Malaysians, says the Finance Minister, even as he announced a slew of cost of living measures.
At a press conference Thursday, Lim Guan Eng (pic) confirmed that the GST would be zero-rated beginning June 1.
“The SST will be tabled in Parliament and is slated to start on Sept 1, 2018.
“All this is expected to return RM17bil to ordinary Malaysians for the rest of the year,” he said.
Lim said that the Government is committed to its promises, especially to ease the cost of living for the rakyat.
Various measures will also return money to the pockets of Malaysian consumers, and to boost the “real economy,” he said.
For example, by stabilising fuel prices, Malaysians stand to save RM3bil, Lim claimed.
The prices of RON95 petrol and diesel will be stabilised and kept at the current levels of RM2.20 and RM2.18 per litre respectively, although after June 7, the price of RON97 petrol will be floated according to market prices.
There will also be a targeted petrol subsidy for those with cars smaller than 1,300cc and motorbikes smaller than 125cc, Lim said.
These, and other measures, would constitute a RM20.7bil boost to consumer spending and business confidence, he claimed.
Meanwhile, Lim confirmed that BR1M (Bantuan Rakyat 1Malaysia or 1Malaysia People's Aid) would be renamed to BSH (Bantuan Sara Hidup or People’s Living Aid).
A total of RM1.6bil would be disbursed to 4.1 million people,
However, some measures promised in Pakatan Harapan’s GE14 manifesto would be postponed until the country’s financial situation improves, he added.