Most food operators not reducing prices of items

GEORGE TOWN: Most of the food and drinks operators here are not reducing their prices despite the zero-rated Goods and Services Tax (GST).

They claimed to have absorbed the tax, which was first introduced some three years ago.

Noodle soup shop owner Sherry Teoh said she has maintained her price at RM4.50, as well as drinks, before and after the implementation of GST.

“When prices of raw ingredients increased after GST was imposed, we did not pass on to our customers.

“So now, we did not reduce the price either but some of our suppliers have raised their prices.

“We will stick to existing prices as most of our customers are regulars,” she said when met at her shop along Carnarvon Street yesterday.

Another food outlet operator, who only wished to be known as Ang, also said he did not reduce the price as suppliers for raw ingredients still charged him the same.

“So, our profits are very small and we cannot afford to cut down on the prices.

“Besides, we have absorbed the increased cost of food supplies after GST was imposed in 2015,” he said.

At the Bayan Baru market complex, P. Somasundaram, who operates the Sri Indian Food stall for 26 years, said he has never increased prices even when GST came into effect.

“Our pricing varies according to the market price. Customers are charged based on the types of food and the amount taken,” he said.

Another stall owner Mohamad Amin Naina Mohamad, who runs an economy rice and drink stall, said he maintained the price for the benefit of his customers.

“With or without GST, our prices remain the same. It is still cheaper compared to others,” he said.