Traders absorbed 6pc GST before June 1

GEORGE TOWN: Since the announcement by the new Pakatan Harapan-led government to reduce the Goods and Services Tax (GST) to zero per cent, traders here have taken the initiative to absorb the six per cent rate charged to their customers even before the official implementation.

An employee at a tyre shop in Jalan Dr Lim Chwee Leong told the New Straits Times Press that the company offered tyres at discounted prices since early this week.

Checks showed that a 15-inch Dunlop tyre was priced at RM190 instead of more than RM200 previously.

“It is not only for one brand. “We have discounted offers for all five brands we are selling here.

“Despite the six per cent deduction, we are still making profit, but at a smaller margin,” he said here yesterday.

It was similar at an electronic appliances shop in Jelutong, where the GST charge on all items had been absorbed.

Checks found that a Samsung 40-inch Full High-Definition LED television was priced at RM1,299 before May 31, and the price was similar yesterday.

There was a significant reduction in the prices of cars, too.

Checks found that all versions of the Perodua Myvi had discounted prices of between RM2,492.26 and RM3,113.77.

Basic necessities, including beef, chicken and wheat flour, did not see any change in prices.