Kluang MP Liew Chin Tong said Putrajaya must make clear how it will deal with an opposite trend in crude oil prices in a way that will be fair to ordinary Malaysians. Budget 2014 assumed that the crude oil price would be at US$110 per barrel while Budget 2015 assumed that it would be at US$105 per barrel. The current price hovers around US$80 to US$85 per barrel. While declining oil prices reduce the subsidy bill, the governments revenue will also fall because at least 30% of it comes from petroleum-related revenue through Petronas. But Putrajaya must also not impose a petroleum sales tax to fill the revenue gap resulting from smaller petroleum-related revenue from Petronas, he said in a statement today. Liew said Prime Minister Datuk Seri Najib Razak, who is also finance minister, should also overrule his deputy Datuk Ahmad Maslan on imposing petroleum sales tax if global oil prices fall. He said it would be unfair for Malaysians if a sales tax was imposed when crude oil prices had fallen below the current pump price. Najib must categorically reject that option now, he said. Liew was commenting on Ahmad who had said that the government could choose to reduce the price of RON95 if the global crude oil fell to as low as RM1.72 per litre and impose a sales tax of 58 sen. - See more at: themalaysianinsider/malaysia/article/putrajaya-must-reduce-ron95-price-if-global-fuel-prices-continue-to-drop-sa#sthash.m8jRIckR.dpuf
Posted on: Sat, 01 Nov 2014 14:00:07 +0000
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