GST exemption for some basic items

Kuala Lumpur

MALAYSIAN Prime Minister Najib Razak sought to assure on Friday that the 6 per cent goods and services tax (GST) to be implemented from April next year will be less painful than anticipated, and that one of the most essential items, fuel - the price of which was raised by a tenth this month - would not be subject to the new tax.

Tabling Budget 2015 in Parliament, he said many basic items and services would not be subject to the tax. He also assured of cash handouts to aid lower and middle-income households that do not pay any income tax but would be caught by the new consumption tax which is projected to bump inflation up to 4-5 per cent next year from about 3.5 per cent this year.