Taxes

When Prime Minister Mahathir was sworn in again in May 2018, the Malaysian government decided to regulate and subsidize diesel, and gasoline RON 95, leaving only the RON 97 gasoline price unregulated and subject to market forces.

From August 1, 2018, the government implemented a sales and service tax replacing the goods and service tax (GST) system. Under this new system, petroleum products, including diesel, are exempt from the general sales tax of 10%. In short, there are no taxes applicable to diesel in Malaysia.