Mixed reactions to zero-rate GST
KUCHING: Many view the enforcement of zero-per cent Goods and Services Tax (GST), which took effect on Friday, as ‘somewhat bittersweet’.
That day, many ‘happy shoppers – armed with trolleys and baskets’ – could be seen at the Giant Hypermarket in Tabuan Jaya here, where the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) personnel were conducting the nationwide ‘Ops Catut 4.0’, aimed at monitoring and ensuring compliance among business operators with regard to zero-rate GST.
A Kampung Tanjung Bako villager Mokhtar Tahir, who was about to purchase a fluorescent tube when met by thesundaypost, said he was relieved to see that the GST had been reduced to zero.
“I think the price (for the fluorescent light) has been reduced a little bit,” he added when asked if there was a price change when met at the hypermarket.
“I think it is a good start and hopefully, this would reduce our monthly household spending.”
A couple from Beladin – Mohd Faizal Latif, 40, and his wife Nurfaridah Ismail, 30 – who took advantage of the holidays to come down to the state capital, also expressed their hope of seeing prices of goods become cheaper upon the revision of GST to zero-per cent.
“We’re here for a shopping trip and we’re aware of the change in GST. I think it’s a good move by the government. Of course we want goods and services to be cheaper,” said Mohd Faizal.
Another couple, Wahab Batu and his wife Zimik Bujang, observed the price differences after surveying a few shopping places.
“Hopefully, this will help us cut down some spending as Hari Raya Aidilfitri is approaching,” said Zimik. Nevertheless, there were several complaints. A Facebook user was shocked to find out that the price of movie tickets at a local cineplex had increased even more than when the GST was six per cent.
According to the shared post, total ticket prices for three adults bought online shot up by 8.4 per cent due to revised hikes in the ticket price itself, booking fees and entertainment tax after the zero-rated GST took effect.
The user, in a hashtag, pointed out: “The government reduces GST to zero per cent to help ‘rakyat’ (people), not to cheat the ‘rakyat’.”
There have been other grouses being raised and posted on social media.
In his assurance, KPDNKK Sarawak deputy director Md Nawawi Abdul Rahman said ‘Ops Catut 4.0’ would be ongoing until the compliance among the traders reaches satisfactory level.
He led the operation, run in collaboration with Customs Department on June 1, and he expressed satisfaction with the compliance shown by retailers.
“Our operation is conducted to make sure all business operators comply and meet the requirements of the implementation of zero-GST, so as to avoid any abuse or manipulation of prices,” he told reporters.
Other objectives were to ensure businesses would not take advantage by increasing the prices of goods and charges for services to make ‘unreasonably high profits’.
It is learnt that the net profit margin for a product or service must be set in accordance with the Price Control and Anti-Profiteering Regulations 2016.
“We are happy that this hypermarket meets the new requirements for zero-GST including (cash register) system and price tagging,” said Md Nawawi.
Emphasising that attention would be given to fresh food items, daily essentials, household products as well as services, he said up as at last Thursday, 543 business premises across Sarawak had been inspected for compliance with zero-rated GST, involving 16,290 types of products.
“Nine complaints were received from consumers – three reports regarding antiprofiteering and GST, while six were on pricing.
“KPDNKK together with Customs will follow up with these reports,” Md Nawawi assured the consumers.
The enforcement team also inspected food outlets near the hypermarket, as well as other goods such as electrical appliances and furniture pieces.
“We’ve also discovered that prices of certain products are way lower than expected – meaning, such businesses are able to lower the prices provided that there is a favourable condition,” he observed.
To file complaints or lodge reports of unethical business practices, call KPDNKK One Call Centre at 03-80008000, its toll-free line 1-800-886-800, email to e-aduan@kpdnkk.gov.my, or type ‘KPDNKK ADUAN <details of complaint> and send text message to 15888.
Alternatively, visit any KPDNKK office across Sarawak, or call KPDNKK Kuching operations room at082-466052.
I think the price (for the fluorescent light) has been reduced a little bit. — Mokhtar Tahir, Kampung Tanjung Bako villager