Govt to evaluate zero-GST effect on food costs, says Salahuddin

Govt to evaluate zero-GST effect on food costs, says Salahuddin

The minister says the move has helped to reduce food production costs.

Free Malaysia Today
Agriculture and Agro-based Industry Minister Salahuddin Ayub says his earlier statement was based on public feedback and his observations.
PUTRAJAYA:
The Agriculture and Agro-based Industry ministry will make a comprehensive evaluation on the effects of the abolition of the goods and services tax (GST) on the cost of food production and price of food items, said its minister Salahuddin Ayub.

He said although GST was not imposed on basic food items previously, the government’s decision in abolishing the tax was good in an effort to reduce food production costs along the value chain.

“This is especially for cost on inputs, machinery and agriculture logistic service,” he said in a statement issued here today to clarify a statement he made on Friday that the price of essential items had dropped between 30% and 50% since Pakatan Harapan (PH) took over the government.

Salahuddin said his earlier statement, which was criticised by various quarters, was based on feedback from the public and surveys.

He said it was also based on his observation of the price of food items, especially vegetables and fruits, at the farmers’ markets.

“The statement is too general and cannot be applied to all food items and in all parts of the country,” he said.

However, he thanked everyone for their views, saying that the ministry was opened to criticisms.

The ministry, he said, would discuss with the relevant groups to ensure there would always be sufficient food supply offered at reasonable prices in the country.

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