You are using an older browser version. Please use a supported version for the best MSN experience.

Domestic Trade Ministry begins price monitoring in lead-up to GST rate reduction

New Straits Times logoNew Straits Times 27/5/2018 TEOH PEI YING

KUALA LUMPUR: The Domestic Trade, Cooperatives and Consumerism Ministry for the Federal Territory has begun inspections on Goods and Services Tax (GST)-registered businesses following the government’s announcement that the rate will be reduced from six to zero per cent, starting June 1.

Its enforcement chief Low Swee Hon said 146 premises were inspected since May 24 as a pre-emptive action to avoid price manipulation once the new directive takes effect.

“We started the inspection on Thursday (May 24), on instructions from our headquarters.

“We monitored and recorded businesses’ current prices to make sure that they will reduce their prices after June 1,” she told reporters after inspecting wares at Pasar Harian Selayang here today.

Low said as of today, her team has recorded the prices of 4,560 items at the retail level.

[[gn4id:31403702]]

“Among the items are food, electrical appliances, cosmetics and books. We will establish a database by May 31 to make sure traders reduce their prices.

“We urge traders to do their part, as action can be taken against them if they fail to abide by the rules,” she said.

The Finance Ministry recently issued an order for the GST to be zero-rated from June 1, to be followed by the reintroduction of the Sales and Service Tax (SST).

The Ministry said that the rate reduction will be implemented nationwide until a further announcement is made.

The new directive does not include goods and services listed in the Goods and Services Tax (Exempt Supply) Order 2014, which remain exempted from GST.

Meanwhile, on inspections at the Selayang wet market, Low said checks found prices of processed chicken had dropped since yesterday.

“Processed chicken is being sold between RM6.80 and RM7.40 today. This is lower than the RM7.50 two weeks ago. The price reduction is due to the lower price set by suppliers.

“We also found that fish has seen a price increment due to low supply. But the rise has only been about five per cent.

[[gn4id:31403703]]

“It is a normal and temporary phenomenon, hence consumers should not be worried and practice smart consumerism when purchasing,” she added.

a group of people looking at a fruit stand: Its enforcement chief Low Swee Hon said 146 premises were inspected since May 24 as a pre-emptive action to avoid price manipulation once the new directive takes effect. Pic by NSTP/EIZAIRI SHAMSUDIN © Provided by Media Prima Its enforcement chief Low Swee Hon said 146 premises were inspected since May 24 as a pre-emptive action to avoid price manipulation once the new directive takes effect. Pic by NSTP/EIZAIRI SHAMSUDIN

Low said that a total of 95 enforcement officers and 88 price monitoring officers surveyed prices of more than 200 items.

“My officers visited markets in TTDI, Sentul, Pudu, Chow Kit and Keramat daily to monitor prices. Prices of 44 items, such as processed chicken and eggs, were monitored daily and some items were recorded weekly.

“We also regularly meet with traders to make sure that supply is sufficient and sold at reasonable prices, particularly during festive seasons,” she added.

© New Straits Times Press (M) Bhd

More From New Straits Times

image beaconimage beaconimage beacon