‘LITTLE IMPACT AS PRICE DROP TOO SMALL’
More than 70pc of items saw reduction of between 0.04 and 13pc only, says minister
THE small drop in the prices of goods is the reason why people have not been able to fully feel or enjoy the effects of the zero-rated Goods and Services Tax (GST) since June 1.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Saifuddin Nasution said the prices of goods appeared to remain the same as more than 70 per cent of 417 items saw a price drop of between 0.04 and 13 per cent only.
He added that based on the findings of a survey done over 35 days from June 1, the 417 items included baby products, and wet and dry sundries.
“In fact, there is no increase and the price drop is so small that it hardly reached 30 to 40 per cent,” he said.
The minister, who is Kulim Bandar Baharu member of parliament, said this after the Ruang Bicara programme aired by Bernama News Channel yesterday.
His comments were based on complaints from the public, consumer associations and former minister Tan Sri Rais Yatim, who claimed that there was no change in the price of goods despite GST being zero-rated.
“When we look at the complaints, there are two scenarios — one, where prices remain unchanged, and the other, the prices have increased.
“However, out of the 10 complaints received, five of them were related to food and beverages in restaurants, dining outlets and food courts.” he said.
Saifuddin said food and beverage prices were lowered at fast-food outlets.
But that was not the case in mamak restaurants where the prices mostly remained unchanged.
In some eateries, the prices had increased.
“There are about 10,000 mamak restaurants and ministry officers found that there was a significant drop in prices at fast-food outlets compared with prices at mamak restaurants.”
He said he planned to display in the ministry’s website a sample of the prices of goods that had been surveyed by his officers.
“We can perhaps create a link for the people to access and see for themselves the results of our survey on the goods,” he added.