Consumers expect prices to come down after abolition of GST

KUCHING: The impending abolition of the Goods and Services Tax (GST) from June 1 has prompted many to anticipate price reduction on most domestic goods and services.

Consumers Voice Association of Sarawak (Covas) chief Michael Tiong said this is the common view of most consumers in the state.

The new Pakatan Harapan (PH) federal government is expected to re-introduce the Sales and Services Tax (SST) to replace the GST.

Tiong said this will increase purchasing power which is expected to increase domestic spending.

However, he feared some traders might take the opportunity to increase prices of goods prior to GST abolition and implementation of SST.

“This is profiteering and not fair to consumers. The Ministry of Domestic Trade, Cooperatives and Consumerism should be strictly monitoring this activity under the Price Control Act and AntiProfiteering Act to prevent this.”

Tiong advised consumers to watch out for any increase in prices after the implementation of zero-rated GST and compare prices with other traders as the abolition of GST should lead to lower prices.

Tiong was responding to an independent movement asking people to check on the accountability and transparency of businesses and take snapshots of price tags from now till May 31 at all outlets selling goods to compare prices.

“Every Malaysian should do his part in making the prices come down to affordable level and inform the authorities to check by sending them photos as proof. Let them explain to the authorities why the prices did not come down,” the movement said.

This is profiteering and not fair to consumers. The Ministry of Domestic Trade, Cooperatives and Consumerism should be strictly monitoring this activity under the Price Control Act and Anti-Profiteering Act to prevent this. Michael Tiong, Consumers Voice Association of Sarawak (Covas) chief