Othman: GST not the main reason behind inflation

THE Goods and Services Tax (GST) is not the main reason behind the increase in price of goods leading to a rise in the cost of living.

Deputy Finance Minister Datuk Othman Aziz said other factors such as foreign currency exchange rates, transport cost, fuel prices and other additional costs such as distribution and marketing channels contributed to the increase.

“The Government also monitors the price increase in goods through the Domestic Trade, Cooperatives and Consumerism Ministry.

“At the same time, the Government also provides other compensation in terms of direct and indirect help, such as BR1M, assistance to farmers, fishermen and others. This is to help offset the rise in prices.

“Therefore, I can say that the increase in the prices of goods is not just caused by GST but also other components,” said Othman to a supplementary question by Anthony Loke (DAP-Seremban).

Loke had asked if the Government had done a study on whether there has been a decrease in the prices of goods after GST was introduced in April 2015.

To a question from Datuk Aaron Ago Anak Dagang (BN-Kanowit), Othman said based on reports, a total of 14,578 investigation papers had been opened by the Customs Department for various tax evasion offences between April 1, 2015 and July 15 this year.