
This was contained in a statement by the domestic trade, cooperatives and consumerism ministry in reply to Ahmad Baihaki Atiqulah (PAS-Kubang Kerian), who asked about the percentage of items now sold cheaper.
Although the ministry’s reply did not include details of what these specific items were, it said the prices of goods did not depend entirely on the GST but were also determined by the exchange rate for the ringgit, wages, supply and demand, weather and fuel prices.
In May 2015, Deputy Finance Minister Ahmad Maslan was reported as saying that the rakyat should have felt the impact of lower prices following the implementation of the GST.
However, he conceded the government was facing problems from a few traders who were still manipulating prices.
“I have given the directive for traders to reduce prices.
“If they don’t follow the order to reduce prices as directed by the Finance Ministry and Royal Malaysian Customs Department, this means they have violated the stipulated acts,” he had said.
The controversial 6% consumption tax that replaced the 10% sales and service tax, was implemented on April 1, 2015 in Malaysia.
Many quarters however have blamed the tax for the increase in the cost of living and for the higher prices of many items.
Prime Minister Najib Razak, who is also finance minister, recently slammed unscrupulous traders and businessmen for increasing the prices of goods and blaming it on the GST.
“And they tell the people to blame it all on the government. That’s the source of the problem.”
Najib said 165 countries had also implemented the GST, with India recently fixing it at 28%.
GST is 28% in India, PM reminds people, blaming high costs on traders