GST rate reduced to zero from June 1: Tun Mahathir

PUTRAJAYA: The Finance Ministry has determined that the supply of goods and services whether local or imported, presently charged at the standard rate of 6% under the Goods and Services Tax (GST) will be reduced to zero rate from June 1 onwards.

In a statement, today, the ministry stated that the imposition of GST at zero rate is applicable throughout the country until further notice.

The stipulation, however, does not cover goods and services listed under the 2014 Goods and Services Tax (Exempt Supplies) Order that has remained exempted from GST.

"Accordingly, all registered traders are required to comply with the latest zero rate imposition.

"At the same time, registered traders are still subject to all current regulations prescribed in respect of tax invoices, tax returns within the prescribed period of time and tax credit input claims.

"Traders will also need to ensure that the prices of goods and services are in compliance with the Price Control and Anti-Profiteering Act 2011 at all times."

The ministry advised those affected to contact the Royal Malaysian Customs Department at 1 300 88 8500 or 03-7806 7200 (Custom Call Center) for further clarification.

Earlier, Prime Minister Tun Dr Mahathir Mohamad confirmed that he instructed the government to stop GST collection as well as impose a fixed petrol price.

"The instruction has been given so the government will no longer collect GST.

"Whatever excess taxes collected under GST will be refunded," he told reporters at Yayasan Perdana, today.

The government, Mahathir said added no longer intends to continue with the weekly price adjustments for fuel prices which was imposed by the earlier Barisan Nasional government.

"No longer up and down, the present (market) rate will stay. The government will subsidise if there are insufficiencies," he added.