Savings notched up with zero-rated GST
PETALING JAYA: A month after the implementation of the zero-rated Goods and Services Tax (GST), Malaysian families saw a reduction in their household spending.
But Luo Wei Ren said the 0% GST did not translate into higher purchasing power.
“I carried out a minor renovation in one of my properties recently, and managed to cut down some of the cost.
“Also, one of my cars got into a minor accident in mid May, requiring some parts to be replaced.
“By delaying the repairs until the first week of June, I managed to save quite a bit,” said the 27-yearold executive.
Luo said not many changes were observed for his daily purchases.
“On average, we save around RM2 to R3 while eating out. As for groceries and other household supplies, we probably save about RM150 a month,” he said.
Mohd Yusri Mohd Yusof said his monthly household spending power has greatly improved.
The 36-year-old teacher said he need not put off spending on big-ticket items like furniture and electrical appliances.
“Before the 0% GST, I would calculate the additional cost and put off buying for a while, but I can buy these items now,” he said.
Mohd Yusri said other yearly expenditure such as renewal of car insurance has also reduced significantly.
In SIBU, Tan Hong Kiang said he bought a car for his son with about RM300 saved on his monthly household expenses.
Tan, who operates a stall selling porridge, said the savings were used to service the car instalments.
“He is working in Kuala Lumpur and badly needed a car. With 0% GST, I quickly got him one,” he said.
His wife Kong Chui Fung said their business improved by between 20% and 30% this month.
“Maybe, the people have more purchasing power and can afford to eat out more often,” she said.
The couple also called on the authorities to check on the prices of chicken eggs, which has not come down yet.
Before this, breeders claimed prices were adjusted as they had to pay GST for chicken feed.