Will SST lead to price increases?
KUALA LUMPUR: Traders here are unsure whether prices of items will increase once the Sales and Service Tax (SST) takes effect today.
Mydin hypermarket managing director Datuk Ameer Ali Mydin said preparations for the implementation of SST was quieter compared with the zero-rating of the Goods and Services Tax.
He said Mydin had sufficient stock to allow it to sell goods at the same price.
“However, for new goods coming from suppliers around October, we expect an increase (in price) of between five and 10 per cent. This depends on the supplier.”
Sales personnel Marzila Mohamed, 44, said up to 1pm yesterday, she had yet to receive instructions from the management on price changes.
She said since morning, she had been swamped by questions on whether prices would change.
“Our system is streamlined by the management. All directives are from the company,” she told the New Straits Times Press.
It is understood that changes to price tags and over the counter system would only be done at midnight.
SST replaces GST following the passing of the Sales Tax Act 2018 and Service Tax Act 2018 by Parliament on Aug 20.
Spa operator Mazaliza Che Mustaffa, 39, wanted the government to provide a better understanding to traders on SST as prices of goods were set by suppliers. She said as a small trader, she was dependent on prices offered by her suppliers.
“I am still maintaining the old prices and have yet to buy new stock for the shop.
“However, if prices of goods from my suppliers go up, then I have to increase the prices of my goods and services.”
Consumers urged the government to monitor prices at the supply and retail levels.
Parasmis Vasathen, 25, said this was because many consumers and traders were not well versed with SST.
“Monitoring will prevent consumers from being cheated through ‘price games’ by suppliers.”
In Bukit Mertajam, consumers said they were worried SST would lead to price hikes.
Consumers at hypermarkets said they expected prices to go up even though SST applied only to manufacturers and some products and services. They said they believed the brunt of the tax would be borne by consumers.
Nur Izati Mohd Noor, 24, said she would be able to cope with the anticipated price hikes.
“I don’t shop often. I only shop for essentials and compare prices before buying. Also, I buy essentials that last me a month,” said Nur Izati, who works at a telecommunications company.
“I do my shopping when there is a sale. I have to be thrifty and buy what I can afford.”
Another consumer, who declined to be named, said he was prepared to face price hikes, like in the past.
“The increase is not only due to the implementation of SST, but also the weakening of the ringgit.
“I really hope our economy will pick up to ensure that we have a better quality of life,” said the man, who works at a private company and runs a small business to supplement his income.
Checks by the New Straits Times showed that many consumers used the National Day holiday to shop. They said they were not resorting to panic buying due to the implementation of SST.
On Wednesday, the Domestic Trade and Consumer Affairs Ministry said it would launch Op Catut on a large scale to monitor the implementation of SST.
The operation would cover manufacturers and importers, besides retailers and wholesalers.
More than 1,000 enforcement officers would be involved, in collaboration with the Customs Department.