PM announces important cabinet decisions, including special payment for civil servants

PUTRAJAYA: Prime Minister Tun Dr Mahathir Mohamad today announced several important decisions taken at today's Cabinet meeting, including a special payment for some civil servants and all government pensioners as well as the abolition of the Goods and Services Tax (GST).
At a press conference held after his second Cabinet meeting at Perdana Putra here, Mahathir, who was flanked by Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail and the Cabinet ministers, announced a special payment of RM400 for civil servants on Grade 41 and below and RM200 for the pensioners.
"These payments will be made on June 6," he said.
Mahathir also announced that the GST would be abolished in September this year and replaced with the Sales and Service Tax (SST) then.
GST would be zero-rated with effect from June 1, he said.
GST was implemented on April 1, 2015, at the rate of six per cent.
Asked whether the SST would be at the rate of the 10 per cent that it was prior to the implementation of the GST, Mahathir said: "We will study it."
Mahathir also announced that a cost-of-living-allowance (COLA) would replace the 1Malaysia People's Aid (BR1M) that was introduced by the previous government.
"Very different, very different," he said when asked for the difference between the COLA and BR1M.
Mahathir also announced that the prices of diesel and RON95 petrol would be retained at RM2.18 and RM2.20 per litre, respectively, while the price of RON97 would be subjected to a free float in accordance with the market price. RON97 petrol now retails at RM2.47 per litre.
The prime minister also announced a 50% discount in the toll rates on all highways on the two days before Aidilfitri next month.
He also announced that the World Cup 2018 soccer matches would be telecast live by RTM for free. The tournament is scheduled from June 14 to July 15 in Russia. — Bernama