Govt to evaluate zero GST effect – Salahuddin

PUTRAJAYA: The Agriculture and Agro-based Industry Ministry will make a comprehensive evaluation on the effects of the abolition of the goods and services tax (GST) on the cost of food production and price of food items, said its minister, Salahuddin Ayub.

He said although GST was not imposed on basic food items previously, the government’s decision in abolishing the tax was good in an effort to reduce food production costs along the value chain.

“This is especially for cost on inputs, machinery and agriculture logistic service,” he said in a statement here yesterday which was issued to clarify a statement he made on Friday on the drop of between 30 and 50 per cent in the price of essential items since Pakatan Harapan (PH) took over the government . Salahuddin said he issued the (Friday) statement, which was criticised by various quarters, on information from the public at several locations and reports on public survey on the drop in the price of essential items.

He said it was also based on his observation of the price of food items, especially vegetables and fruits, at the farmers’ markets.

“The statement is too general and cannot be assumed for all food items and in all parts of the country,” he added.

However, he thanked all quarters for their views, saying that the ministry was opened to criticisms.

The ministry, he said, would discuss with the relevant quarters to ensure there would always be sufficient food supply and at reasonable price in the country.